Madhya Pradesh: Demand for Equal Gratuity and Leave Encashment Benefits for Retirees During COVID-19

Demand for Equal Gratuity and Leave Encashment Benefits During COVID-19

In Madhya Pradesh, a strong demand has emerged for the government to provide the same Dearness Allowance (DA) benefits for calculating gratuity and leave encashment to state government employees who retired during the COVID-19 pandemic, mirroring the central government's approach. The Pensioners Welfare Association has submitted a detailed memorandum to the state's Chief Secretary and Additional Chief Secretary of the Finance Department, urging them to compensate affected retirees for their financial losses and issue necessary executive orders.

Call for Parity with Central Government Benefits

According to the Association's state president, Amod Saxena, both central and state governments had temporarily deferred additional installments of Dearness Allowance for employees during the COVID-19 pandemic. The central government, however, subsequently introduced a separate arrangement to provide retired central government employees with benefits based on prescribed rates for gratuity and leave encashment, particularly for those retiring between January 2020 and June 2021.

The Association argues that just as the central government's Department of Expenditure, Ministry of Finance, issued a circular on September 7, 2021, providing benefits based on revised DA rates, the affected employees in Madhya Pradesh should receive similar treatment. Ganesh Dutt Joshi, patron of the Association, highlighted that retirees in Madhya Pradesh between January 2020 and September 2021 had their gratuity and leave encashment calculated at a mere 12% DA rate, resulting in significant financial losses compared to their actual dues.

Protecting Financial Rights

Association officials emphasized that employees retiring during the COVID-19 period served the government with utmost dedication. Gratuity and leave encashment are crucial financial entitlements tied to their service tenure. They stressed that the government should consider this matter sympathetically and provide a resolution if employees received less due to lower DA rates during calculation.

Suresh Sharma, president of the Bhopal district unit, stated that the Pensioners Welfare Association has previously submitted multiple memorandums to the Madhya Pradesh government. The organization has consistently demanded that retired employees who retired during the pandemic period be provided benefits consistent with the provisions made by the central government's Department of Expenditure in its September 7, 2021 circular.

Argument for Equality and Appeal to the State Government

Sharma further stated that it is unfair to treat employees retiring under similar circumstances differently simply because they were employees of the central or state government. In both cases, retirement occurred during the severe COVID-19 pandemic, and the deferral of DA directly impacted their retirement financial benefits. Therefore, the state government should thoroughly study the central government's decision and take active steps to provide relief to affected employees accordingly.

The Association has specifically requested the government to recalculate gratuity and leave encashment for employees who retired during the COVID-19 pandemic and expedite the payment of the differential amount due. They believe the Finance Department should issue necessary directives and establish a clear departmental procedure, eliminating the need for retirees to file applications or navigate complex processes at various levels to claim their rights.

Expectation of Action and Advocacy for Just Benefits

Vice-presidents Santosh Thakur and Shailendra Srivastava, secretary Ramgopal Mathur, Yashwant Singh Bais, joint secretary Shakuntala Verma, and executive members Sangeeta Srivastava and Anil Pandey, along with other officials, have urged the government to make a swift decision on this critical issue. They reiterated the demand for immediate executive orders or circulars to provide benefits equivalent to those offered by the central government, addressing the financial losses incurred due to DA rates during gratuity and leave encashment calculations for COVID-19 retirees.

Association president Amod Saxena clarified that the organization's aim is not to create disputes but solely to ensure just financial benefits for affected retirees. He expressed strong hope that the Chief Secretary and the Finance Department will adopt a positive approach and take necessary, prompt action in favor of retirees who retired during the COVID-19 pandemic.