Leave salary and Pension Contribution

In this post, we will talk about Leave salary and Pension contribution. We will discuss what is meant by them, how these are calculated and will do a practice question on it. Everything related to leave salary and pension contribution is explicitly described in chapter 10 of the Punjab civil service rules volume 1 part 1. let's study it in brief.

Leave Salary

As per rule 8.122(1) of the Punjab civil service rules volume 1 part 1, an officer on earned leave shall be entitled to leave salary equal to the pay drawn immediately before proceeding on leave. In simple words, leave salary means the salary that has been drawn during leave.

Leave Salary Contribution and Pension Contribution

While a Government employee is in foreign service, contribution towards the cost of his leave salary and pension shall be paid to Government revenues on his behalf by the borrowing department. As per rule 10.8 of CSR volume 1 part 1, the contribution payable on account of pension and leave salary with a view to-

(a) secure to the Government employee the pension that he would have earned by service under Government if he had not been transferred to foreign service; and

(b) to secure to Government employee leave salary on the scale and under the conditions applicable to him.

Contributions in case of Deputation and Foreign service

First of all we have to figure out the difference between Deputation and Foreign service. Deputation means an employee transferred temporarily to another office or department under the Government. Whereas Foreign service means an employee transferred to a semi-government organization like boards or corporations. In this case Government employee receives his pay with the sanction of Government from any source other than the revenues of the Union or State Government or a Union Territory. That is why contributions in case of Foreign service shall have to be paid to Government revenues.

Rates of Leave salary and pension contribution

As per serial number 2 of Annexure B appended to Chapter 10 of CSR volume 1 part 1, rates of monthly contribution for leave salary payable during active foreign service in respect of Government employees is 11 percent of pay drawn in foreign service.

On the other hand rates of monthly contributions for pension payable during the active foreign service is according length of service and also as per group A, B, C,D as shown below:-

Pension contribution Table