Admissibility of Severance Amount to Gramin Dak Sevaks on Retirement, Death and on absorption on regular posts – Clarification regarding:

No. 6-31/2010-PE II

Government of India

Ministry of Communications & IT

Department of Posts

(Establishment Division)

Dak Bhawan, Sansad Marg.

New Delhi-110116

Dated: 05.08.2011

All Chief Postmaster General

All Postmasters General

Director, Postal Staff College, Ghaziabad,

Director, Postal Training Centers,

All General Managers (Finance)/ Director of Accounts (Postal)

Sub: Admissibility of Severance Amount to Gramin Dak Sevaks on Retirement. Death and on absorption on regular posts – Clarification regarding

Attention of all concerned is invited to Annexure-III of this Directorate order No. 6-1/2009-PE.II dated 08.10.2009 containing details of existing and revised benefits under nature of benefit named 'Severance Amount'.

2. In this context, it is to clarify that the present benefit shown against Severance Amount also includes Severance Amount on absorption on regular posts payable @ Rs. 20000/- (Rs. Twenty thousand only) to an EDA (now called GDS) absorbed on regular basis against a departmental post after 15 years of continuous service as ED Agent (now called GDS) in the light of the common recommendation made by the GDS Committee in Para 14.14.1. Therefore, the revised benefit indicated against nature of benefit 'Severance Amount' is applicable not only on retirement/death but also on absorption against departmental posts @ Rs. 1500 for every completed year of service subject to maximum of Rs. 60000 with reduction in minimum eligibility to 10 years.

3. Therefore, the words "Severance Amount on retirement/death" may be taken as inserted on the top as headline above the existing para under present benefits against 'Severance Amount' starting with "A lump sum severance amount and ending with amount paid is Rs. 20000." Below this para, a new headline as "Severance Amount on absorption on regular posts" & a para beneath it starting as "Severance amount of Rs. 20000 (Rs. Twenty thousand only) is paid on absorption on regular basis against a departmental post after 15 years of continuous service" may also be taken as inserted & accordingly the Annexure III to this Directorate Order No. 6-1/2009-PE II dated 09 Oct 2009 may be taken as amended. Revised Annexure III to this Directorate Order ibid is appended below:-

Nature of Benefit	Present Benefits	Revised Benefits
Ex-gratia Gratuity	Granted at the rate of half months basis TRCA drown immediately before discharge of service for each completed year of service subject to maximum of Rs. 18000 or 16.5 months basic TRCA last drawn whichever is less. Minimum service prescribed is 10 years	Continuance of the existing formula for grant Ex-gratis Gratuity subject to a maximum of Rs. 60000.
Severance Amount	Severance Amount on retirement/death A lump sum severance amount of Rs. 30000/- is paid on discharge provided a GDS has completed 20 years of continuous service. In case of a GDS completing 15 years of service but less than 20 years of continuous service the severance amount paid is Rs. 20000 Severance Amount on absorption on regular post Severance amount of Rs. 20000 (Rs. Twenty thousand only) is paid on absorption on regular basis against a departmental post after 15 years of continuous service	Severance amount shall be paid at the rate of Rs. 1500 for every completed year of service subject to a maximum of Rs. 60000 with reduction in minimum eligibility period to 10 years.

3. This may be brought to the notice of all concerned. This has the approval of the competent authority.

Sd/-

(Surender Kumar)

Assistant Director General (GDS)