Para 9.6 — This para specifies the correct accounting heads f
Original Rule Text
9.6 HEADS OF ACCOUNTS FOR CREDIT OF LEAVE SALARY/PENSION CONTRIBUTIONS 9.6.1
(i) If the contributions towards leave salary and pension are recovered together, it shall be credited to Government account under the head "0071-Contributions and Recoveries towards Pension and other Retirement Benefits-101-Subscriptions and Contributions”.
(ii) When leave and pension contributions are recovered separately, the pension contribution will be credited to the head "0071-Contributions and Recoveries towards Pension and Other Retirement Benefits -101-Subscriptions and Contributions. The leave salary contributions in such cases will be credited to the receipt head corresponding to the functional head of the establishment. Alternatively, if there is no corresponding receipt head, it will be credited to the minor head 'Other Receipts' under the residuary receipt major head in the respective sectors.
(iii) Leave salary contributions received in respect of AIS Officers shall be credited to the minor head "800-Other Receipts" below the sub-major head '60-Other Services' under the major head '0070-Other Administrative Services'.
9.6.2 Penal interest on arrears of contributions towards leave salary and pension of Government servants on foreign service shall be credited to the same head of account to which the contributions are credited.
9.7 PAYMENT OF PENSION OR CPF CONTRIBUTIONS, GPF AND/OR CGEGIS SUBSCRIPTIONS OR REPAYMENT OF LOANS AND ADVANCES DURING THE PERIOD OF FOREIGN SERVICE OUT OF INDIA.
9.7.1 The PAO will be responsible to regularly watch the receipt of dues from the Government servants proceeding on foreign service out of India. The dues will include the recoveries and contributions on account of Pension, CPF, GPF subscriptions and repayment of loans and advances, that the employees are required to remit during the period of their foreign service out of India. Such recoveries and contributions are regulated by the procedure laid down in the Ministry of Finance, DoE, O.M. No. F. 8(8)-E.III/81 dated 22nd September, 1981, as amended from time to time.
Authority: Ministry of Finance (Department of Expenditure) O.M. No F 8(8)-E. III/81 dated 22-9- 1981 read with O.M. No. E.III/82 dated 11.5.82).
9.8 DISCHARGE OF LIABILITY TOWARDS EARNED LEAVE DUE TO A GOVERNMENT SERVANT DEPUTED TO A PUBLIC SECTOR UNDERTAKING ON FINAL ABSORPTION.
9.8.1. This is governed under the provisions of O.M., No. 28016/5/85-Estt(C) dated 31st January 1986 issued by Government of India, Deptt. of Personnel and Training, as amended from time to time. Under these provisions, the Government shall pay a lump-sum amount to the Government servant on the date of absorption to the PSU, which shall be equal to the leave salary due against the earned leave at credit. The half pay leave at his credit will however, stand forfeited. The concerned Department will discharge the pension liability in such cases, as per the instructions and procedure in the Ministry of Finance OM No. 26(18) -EV (B)/75 dated 8-4-76, and subsequent orders issued on the subject from time to time by the Dept. of Personnel & Training and Department of Pension & Pensioners Welfare.
9.8.2. The procedure to be followed in this regard is outlined below - (i). With the departmentalization of accounts and issue of Ministry of Finance, DEA, Budget Division's O.M. dated 28.2.76, the Heads of Offices are to determine the entitlement of pay and allowances of all staff members, including the gazetted officers. The Pay and Accounts Officers will only maintain the records relating to watching of recoveries of leave salary and pension contribution from the autonomous body/organization.
(ii). When a Government servant deputed on foreign service to a Public Undertaking opts for permanent absorption therein, the Head of Office of the employee’s parent department shall work out the leave at the credit of the Government servant, on the date on which he is permitted absorption in the Public Sector Undertaking. He shall also work out the amount of corresponding leave salary under relevant rules. Simultaneously, he should ascertain from the Pay and Accounts Officer whether up to date foreign service contributions have been recovered from the concerned Public Sector Undertaking. After receiving this information, the Head of Office will prepare a bill towards lump-sum leave salary, deducting the amount of foreign service contribution not realized if any, and present it to the concerned Pay and Accounts Officer for payment.
(iii). The cheque for the amount drawn in favour of the Government servant received by the DDO shall be sent to the concerned Undertaking under intimation to the employee. The Pay and Accounts Officer will keep a note of the payment in the service book of the employee as well as in the relevant register of foreign service contributions.
9.8.3 The expenditure on payment of the lump-sum leave salary will be debited to the head of account to which the leave salary of the Government servant would have been debited in the normal course.
What This Means
This para specifies the correct accounting heads for crediting leave salary and pension contributions from foreign service. When recovered together, contributions go under head '0071 - Contributions and Recoveries towards Pension and Other Retirement Benefits'. When recovered separately, pension contributions go to the same head '0071', while leave salary contributions are credited to the receipt head corresponding to the establishment's functional head. It also covers the procedure when a government servant is permanently absorbed into a Public Sector Undertaking: the parent department pays a lump-sum amount equal to earned leave salary at credit, forfeiting half pay leave, and the payment is debited to the head where leave salary would normally be charged.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Combined leave salary and pension contributions are credited under head '0071 - Contributions and Recoveries towards Pension and Other Retirement Benefits - 101'
- 2When recovered separately, pension goes to '0071' and leave salary goes to the receipt head corresponding to the functional head of the establishment
- 3Penal interest on arrears is credited to the same head as the contributions themselves
- 4On permanent absorption to a PSU, earned leave at credit is paid as a lump sum; half pay leave stands forfeited
- 5The PAO watches receipt of all dues (pension, CPF, GPF, loan repayments) from employees on foreign service out of India
Practical Example
A Deputy Director from the Ministry of Agriculture is permanently absorbed into the Food Corporation of India (a PSU). The Head of Office calculates 180 days of earned leave at his credit and works out the corresponding leave salary amount of Rs 4,50,000. He confirms with the PAO that all foreign service contributions are up to date. The PAO issues a cheque for the lump-sum leave salary (after deducting any unrealized contributions), debiting it to the same head of account where the officer's leave salary would have been charged. The employee's half pay leave balance of 120 days stands forfeited.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Under which accounting head are combined leave salary and pension contributions credited?▼
What happens to accumulated leave when a government servant is permanently absorbed into a PSU?▼
Where is penal interest on arrears of foreign service contributions credited?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.