View Full Version : Leave Salary Contribution Calculation

19-11-2010, 11:03 AM
I had been on lien from 01.08.2006 to 31.05.2009.

I am asked to remit the Pension Contribution. My pay as on 01.08.2006 would be:

Basic : 24850 AGP : 8000

Kindly helpe to arrive at the total contribution for the above said period.
These are governed under Tamilnadu G.O. Ms.No.177 Dated : 6.10.1999
which says

"2.The steady increase in Dearness Allowance, payable to Government employees over the last one decade and a portion of its conversion as ‘Dearness Pay’ for
pensionery benefits at certain points in time engaged the attention of the Government to make certain changes in calculation of pension contribution. In view
of the increasing commitment of pension, the Government have decided to fix the pension contribution at the rate of 10 per cent of the maximum of scale of
pay including special pay and personal pay, if any plus appropriate Dearness Allowance thereon.

3. The Government accordingly direct that in respect of Government servants deputed on Foreign Service to State Government Owned or Controlled
Corporations/Boards/Undertakings, pension contribution shall be recovered at the rate of 10 per cent of the maximum of the scale of pay (including Special Pay
and Personal Pay, if any) plus the appropriate Dearness Allowance thereon."

So here how do I arrive at Maximum Pay (Including Personal Pay & Special Pay)+DA
There exists a controversy in arriving at the Maximum Pay in my office.
Please note that I am not entitled for any Personal Pay and Special Pay as of 01.08.2006.

I would greatly appreciate the advice from senior members.

There are no other members like my cadre in my office so that I could compare.

My heartfelt gratitudes for your invaluable help.

20-11-2010, 01:27 PM
Consequent to implementation of the 6CPC w.e.f. 1.1.2006 vide which Pay Bands and Grade Pays have been introduced in the Government of India, the method of calculating pension contribution during foreign service has been revised with retrospective effect (from 1.1.2006) vide OM dated 19/11/2009 (http://persmin.gov.in/WriteReadData/Estt/2_34_2008-Estt.%28Pay-II%29.pdf).

As per this OM, the pension contribution payable during foreign service will now be based on the existing basic pay at the time of proceeding on foreign service.

However, the applicability of this OM in your case needs to be verified. Perhaps a similar Order needs to be issued by the State Government.


20-11-2010, 07:49 PM
Leave salary contribution is @ 11% of pay drawn

18-06-2013, 12:22 AM
Leave salary contribution is @ 11% of pay drawn

I am on deputation from Central Government Service to a State PSU. The company wants the relevant orders for remittance of my Pension contribution and Leave Salary contribution. Regarding Pension contribution, I could trace out the number of an OM from Swamy's Handbook. But regarding Leave Salary Contribution, no OM could be traced. Kindly give some info on the relevant OM if you are having any idea.

Thanks in advance