33.    Emoluments

    ¹[The expression `emoluments' means basic pay as defined in Rule 9 (21) (a) (i) of the Fundamental Rules which a Government servant was receiving immediately before his retirement or on the date of his death ; and will also include non-practising allowance granted to medical officer in lieu of private practice.]

Footnote : 1. Substituted by G.I., Dept. of P. & P.W., Notification No. 2/18/87-P. & P.W., (PIC), dated the 20th July, 1988. Published as S.O. No. 2388 in the Gazette of India, dated the 6th August, 1988. Takes effect from 1st January, 1986.

    ²[EXPLANATION. - Stagnation increment shall be treated as emoluments for calculation of retirement benefits.]

Footnote : 2.Inserted by G.I., Dept. of P. & P.W., Notification No. 38/52/90-P. & P.W/A, dated the 5th March,1991, published as S.O. No. 1294 in the Gazette of India, dated the 11th May, 1991. Takes effect from 1st January, 1986, vide O.M. No. 38/52/90-P. & P.W./A, dated the 31st October, 1990. 

    NOTE 1. - If a Government servant immediately before his retirement or death while in service had been absent from duty on leave for which leave salary is payable or having been suspended had been reinstated without forfeiture of service, the emoluments which he would have drawn had he not been absent from duty or suspended shall be the emoluments for the purposes of this rule :

    Provided that any increase in pay (other than the increment referred to in Note 4 ) which is not actually drawn shall not form part of his emoluments.

    NOTE 2. - Where a Government servant immediately before his retirement or death while in service had proceeded on leave for which leave salary is payable after having held a higher appointment whether in an officiating or temporary capacity, the benefit of emoluments drawn in such higher appointment shall be given only if it is certified that the Government servant would have continued to hold the higher appointment but for his proceeding on leave.

    NOTE 3. - If a Government servant immediately before his retirement or death while in service had been absent from duty on extraordinary leave or had been under suspension, the period whereof does not count as service, the emoluments which he drew immediately before proceeding on such leave or being placed under suspension shall be the emoluments for the purposes of this rule.

    ¹[NOTE 4. - If a Government servant immediately before his retirement or death while in service, was on earned leave, and earned an increment which was not withheld, such increment, though not actually drawn, shall form part of his emoluments :

Footnote : 1. Substituted by G.I., Dept. of Per. & A.R., Notification No. 6 (2)-Pen. (A)/79, dated the 1st August, 1980.

    Provided that the increment was earned during the currency of the earned leave not exceeding one hundred and twenty days, or during the first one hundred and twenty days of earned leave where such leave was for more than one hundred and twenty days.]

    ²NOTE 5. - Omitted by G.I., Dept. of Per. & A.R., Notification No. 6 (2)-Pen. (A)/79, dated the 1st August, 1980.

    NOTE 6. - Pay drawn by a Government servant while on deputation to the Armed Forces of India shall be treated as emoluments.

    NOTE 7. - Pay drawn by a Government servant while on foreign service shall not be treated as emoluments, but the pay which he would have drawn under the Government had he not been on foreign service shall alone be treated as emoluments.

    ³NOTE 8. - Where a pensioner who is re-employed in Government service elects in terms of clause (a) of sub-rule (1) of Rule 18 or clause (a) of sub-rule (1) of Rule 19 to retain his pension for earlier service and whose pay on re-employment has been reduced by an amount not exceeding his pension, the element of pension by which his pay is reduced shall be treated as emoluments.

Footnote : 3. Inserted by G.I., M.F., Notification No. 2 (3)-E. V (A)/73, dated the 16th July, 1975 and takes effect from the 3rd May, 1974.

    ²NOTE 9. - Omitted by G.I., Dept. of Per. & A.R., Notification No. 6 (2)-Pen. (A)/79, dated the 1st August, 1980.

    ⁴NOTE 10. - When a Government servant has been transferred to an autonomous body consequent on the conversion of a Department of the Government into such a body and the Government servant so transferred opts to retain the pensionary benefits under the rules of the Government, the emoluments drawn under the autonomous body shall be treated as emoluments for the purpose of this rule.

Footnote : 4. Inserted by G.I., M.F., Notification No. F. 2 (5)-E. V (A)/77, dated the 30th June, 1977 and takes effect from the 16th July, 1977.

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33. GOVERNMENT OF INDIA'S DECISIONS

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(1)    Counting of emoluments drawn by officers while on deputation from State to Centre. - When a State Government employee comes on deputation to the Central Government, he is generally granted a deputation special pay in addition to his usual pay. Till lately the question whether any part of this deputation special pay could be reckoned as `emoluments' for calculating pension used to be decided by the Central Government with reference to their rules on the subject. Recently this practice was reviewed by the Government of India in consultation with the Comptroller and Auditor-General and the State Governments. It was held that since a State Government employee, while on temporary deputation to the Central Government, did not become subject to the rules and orders or the latter Government, and his pension was otherwise calculated under the rules of the State Government of which he was permanent employee, the practice of applying Central Government rules to determine the quantum of deputation special pay which should count for pension was incongruous. It has, therefore, been decided that henceforth in cases of deputation of State Government employees to the Central Government, the question whether any part of the deputation special pay received by such an employee will count for pension will be decided by the State Government concerned with reference to their own rules on the subject. If for proper application of the State Government rules any question arises regarding the exact nature and classification of the deputation special pay, the State Government will consult the Central Government who alone would be aware of the precise reasons for which the additional remuneration was granted. Similarly when a State Government employee on deputation to the Central Government holds a temporary or officiating appointment on a regular time-scale, the question whether any part of the difference between the pay, which he actually draws while on deputation and that which he would have drawn from the State Government but for his deputation, should count for pension will be decided by the State Government with reference to their pension rules.

    The same arrangement will apply in reverse in the case of Central Government employees who are sent on deputation to State Governments.

    The above instructions will not apply in cases of officers on deputation to the Central Government from the State of Jammu and Kashmir or vice versa.

    The Jammu and Kashmir Government's arrangement in cases of deputation from and to that Government is different from that of other Governments. They pay or recover leave and pension contributions monthly, as the case may be, and thus the pensionary liability of the borrowing Government is discharged concurrently.

[G.I., M.F., O.M. No. F. 8 (5)-E. V (C)/61, dated the 2nd July, 1962 and O.M. No. F. 2 (6)-E. V (A)/72, dated the 10th January, 1974 and M.H.A., Dept. of Per. & A.R., O.M. No. 27/4/81-Pension Unit, dated the 22nd May, 1982, extending the scope to the States of Punjab and Haryana respectively.]

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(2)    Nursing allowance, uniform allowance, washing allowance, special pay and qualifications pay received by nursing personnel do not count as emoluments. - Enquiries are being received from time to time whether the Nursing Allowance, Uniform Allowance, Washing Allowance, Special Pay and Qualification Pay granted to nurses working in Central Government institutions under the following orders :-

are counted for the purpose of determining pension/gratuity, etc.

2.    It is clarified that as per the Pension Rules, the term `emoluments' for purpose of calculating various retirement and death benefits shall mean basic pay as defined in FR 9 (21) (a) (i) which the Government servant was receiving immediately before his/her retirement or on the date of his death, i.e., it includes only basic pay (substantive or officiating) drawn by him/her but does not include Special Pay, Personal Pay, Deputation (Duty) Allowance, etc. However, Non-Practising Allowance and Stagnation Increments count as "emoluments".

3.    In view of the above definition of "emoluments" for purpose of determining pension/gratuity, the allowances such as Nursing Allowance, Uniform Allowance, Washing Allowance, Special Pay and Qualification Pay drawn by nursing personnel working in the Central Government Hospital/Institutions/Hospital run by the Delhi and New Delhi Municipal Committee and Centrally funded autonomous bodies like All India Institute of Medical Sciences, New Delhi, Postgraduate Institute of Medical Education and Research, Chandigarh etc., do not count as `emoluments' for purposes of retirement benefits.

4.    This issues with the concurrence of Department of Pension and Pensioners' Welfare (Pension Unit), New Delhi, vide their Dy. No. 7464, dated 7-5-1992.

[G.I., Min. of Health and F.W., O.M. No. Z-28016/14/90-PMS, dated the 20th July, 1992.]

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(3)    DA admissible on the date of retirement/death shall be trated as "emolments" for all types of gratuity under 49 & 50 from 1-1-1996.

        Refer DP&PW's O.M. No. F45/86/97-P&PW(A) Part I dated 27-10-1997 & DP&PW's O.M. No. F45/86/97-P&PW(A) Part I dated 4-12-2001.

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(4)    50% of basic pay to be treated as "Dearness Pay" and will count as "emoluments" for determining pension retirement benefits from 1-4-2004.

Refer DP&PW"s o.m.no.42/2/2004-P&PW(G) dated 15-3-2004(Part II (M/O Finance's O.M. No. 105/1/2004-IC dated 1-3-2004))

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(5)    Merger of 50% Dearness Allowances/ Dearness Relief with pay/pension/family pension from 1-4-2004.

Refer DP&PW"s o.m.no.42/2/2004-P&PW(G) dated 15-3-2004 (Part I)

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34.    Average Emoluments

    Average emoluments shall be determined with reference to the emoluments drawn by a Government servant during the last ¹[ten months] of his service. 

    NOTE 1. - If during the last ¹[ten months] of his service a Government servant had been absent from duty on leave for which leave salary is payable or having been suspended had been reinstated without forfeiture of service, the emoluments which he would have drawn had he not been absent from duty or suspended shall be taken into account for determining the average emoluments :

    Provided that any increase in pay (other than the increment referred to in Note 3) which is not actually drawn shall not form part of his emoluments.

    NOTE 2. - If, during the last ¹[ten months] of his service, a Government servant had been absent from duty on extraordinary leave, or had been under suspension the period whereof does not count as service, the aforesaid period of leave or suspension shall be disregarded in the calculation of the average emoluments and equal period before the ¹[ten months] shall be included.

Footnote : 1. Substituted by G.I., Dept. of Per. & A.R., Notification No. 6 (1), Pen. (A)/79, dated the 19th May, 1980. Takes effect from 1st March, 1976.

    ²[NOTE 3. - In the case of a Government servant who was on earned leave during the last ten months of his service and earned an increment, which was not withheld, such increment though not actually drawn shall be included in the average emoluments :

    Provided that the increment was earned during the currency of the earned leave not exceeding one hundred and twenty days or during the first one hundred and twenty days of earned leave where such leave was for more than one hundred and twenty days.]

Footnote : 2.Substituted by G.I., Dept. of Per. & A.R., Notification No. 6 (2) Pen. (A)/79, dated the 1st August, 1980. 

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34. GOVERNMENT OF INDIA'S DECISIONS

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(1)    Average emoluments during erroneous reversion. - Some cases have come to notice of the Government in which owing to administrative errors, persons not due for reversion were reverted and repromoted after lapse of some period resulting in decrease in their pensions due to non-inclusion of the emoluments which they would have received but for their reversion for the purpose of calculation, vide Rule 3 under Article 487 of the CSRs [Rule 34 of CCS(P) Rules, 1972]. It is considered that in such cases it would not be fair to put the persons concerned to a recurring loss in the form of reduced pension. It has, therefore, been decided that in cases of wrongful reversion, where on repromotion the pay of the individual is fixed in accordance with the provisions of sub-paragraph 2 (1) (a)  of  G.I., M.H.A., O.M. No. 9/49/54, R.P.S., dated the 24th April, 1958, for purpose of the pension, the pay the individual would have drawn but for his reversion should be taken into account.

[G.I., M.H.A., O.M. No. 50/6/59-Estt. (A), dated the 5th December, 1959.]

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(2)    "Emoluments" in cases where pay and allowances for the period of suspension is restricted to subsistence allowance and pay scale revised meanwhile. - 1. A question has been raised as to what emoluments are to be taken into account for calculating the pension in the case of a person who has been suspended and subsequently reinstated without forfeiture of past service, the pay and allowances for the suspension period being restricted to the subsistence allowance already drawn. The Ministry of Finance had clarified that the difference between the subsistence allowance and emoluments which he would have drawn had he not been suspended cannot be treated as increase in pay for the purpose of proviso to Note 1 below Rule 34 of CCS (Pension) Rules, 1972.

2.    A case has come to notice where an official was placed under suspension in 1965, but was reinstated in 1974 and the orders of re-instatement stated that the period of suspension would be counted as duty for all purposes but the pay an allowances in respect of the period of suspension would be restricted to the subsistence allowance already drawn. In this case, as per rules, the pay on reinstatement was to be fixed in the revised scale introduced with effect from 1-1-1973 and notionally regulated increments due duly allowed. In this connection, for the purpose of determining  pensionary benefits, it is hereby clarified that having fixed the pay in the revised scale it would not be correct to certify that having fixed the pay in the revised scale it would not be correct to certify that the employee concerned would continue to draw pay in the old scale from 1-1-1973 onwards, had he not been suspended. The old scale, having been replaced by the revised scale with effect from 1-1-1973, the correct course would be to take into account the notional pay in the revised scale for the period from 1-1-1973 onwards.

[G.I., Dept. of Per. & A.R., O.M. No. 27/1/81-Pension Unit, dated the 5th April, 1982.]

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(3)    Determination of the period of ten months for Average Emoluments. - In accordance with item 18 (i) of Form 7 (Form for assessing pension and gratuity) and note (ii) under item (19) of Part I, Section I of Form 18, of the CCS (Pension) Rules, 1972, the calculation of average emoluments is to be based on the actual number of days contained in each month. Doubts have been expressed in regard to the exact manner of calculation in the case of a Government servant who retires on a date other than the last date of the month. A point has also been raised whether the period of ten months should be taken to be continuous period beginning from a date ten months prior to the date of retirement or the number of days in the month in which the Government servant retires should be counted separately together with the balance number of days during the ten months anterior, to make a full month. This can best be explained by the illustration below -

    Suppose a Government servant retires on the 17th June, 1981. The intention is that the average emoluments for ten months should be reckoned for the periods as follows :-

    It will be noted that at one end there are 14 days of August and at the other 16 days of June. In order that the fractions of a month at either end, when added, work out to one full month, a month for this purpose may be reckoned as consisting of thirty days so that fractions at either end will be expressed as 14/30 and 16/30. The addition of fractions totalling 30 days together with 9 full months will work out to 10 months. Emoluments for fractional periods may be computed by multiplying the emoluments by the factor 14/30 and 16/30 irrespective of the number of days in the month. This formula will also apply in the case of the month of February, irrespective of whether the month has 28 days or 29 days.

[G.I., M.H.A., O.M. No. 27/3/81-Pension Unit, dated the 13th November, 1981.]

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(4)    Computation of average emoluments for the period of leave prior to retirement without return to parent department while on reversion from deputation. - The procedure for determining the emoluments and average emoluments for purpose of pension under the Central Civil Services (Pension) Rules, 1972, has been laid down under Rules 33 and 34. The position in respect of Government servants who is on deputation to the Armed Forces or foreign service or on deputation from one Department to another in this regard has also been clarified vide Notes 6 and 7 below  Rules 33 ibid. There is, however, no provision as to what should be the pay for computing the average emoluments in respect of deputation from one Department to another, who while under orders for reversion to parent Department instead of joining duty under parent Department (where the pay of the post might be different) gives notice to retire voluntarily and also applies for leave coterminous with the period of notice. It has been decided that in such cases, the emoluments for the leave period for the purpose of calculation of retirement benefits should be taken as what they would  have been, had he not been absent from duty from the post he was holding under the borrowing Department before he proceeded on such leave.

[G.I., Dept. of Per. & A.R., O.M. No. 35 (1)/83-Pen. Unit, dated the 30th December, 1983.]

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(5) Higher Pay Scales to the Organised  Accounts Departments - Revision 0of Pension --

(Refer DP&PW O.M 38/86/03-P&PW(A)- Part III date 26-04-2004)

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(6) Computation of 'average emoluments' in the case of those opting for revised scales of pay under CCS (RP) Rules, 1986 and retiring within ten months. - In the case of Government servants who have opted for the revised scales of pay and retire within ten months from the date of coming over to the revised scale, `average pay' for ten-month period preceding retirement shall be calculated by taking into account pay as follows :-

[G.I., Dept. of P. & P.W., O.M. No. 2/1/87-PIC II, dated the 14th April, 1987 ; No. 2/1/87-PIC, dated the 9th June, 1987 ; O.M. No. 2/1/PIC, dated the 8th December, 1987 ; and O.M. No. 38/52/90-P. & P.W./A, dated the 31st October, 1990, M.F., O.M. No. 7 (15)-E. III/87, dated the 18th September, 1987.]

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