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Rule 116 - Pension Contributions | KartavyaDesk

FR/SR

Original Rule Text

F.R. 116. The rate of contributions payable on account of pension and leave salary shall be such as the President may by general order prescribe.

What This Means

Fundamental Rule (FR) 116 deals with the contributions government departments or organizations make towards the pension and leave salary of their employees who are on deputation or foreign service. Essentially, when an employee is working outside their parent department (for example, with another government body or an international organization), the receiving organization needs to contribute a certain amount to cover the employee's pension and leave salary benefits. This rule states that the specific rate of these contributions is determined by orders issued by the President of India.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Deals with contributions for pension and leave salary.
  • •Applies when government employees are on deputation or foreign service.
  • •The receiving organization (where the employee is deputed) is responsible for the contributions.
  • •The President of India, through general orders, sets the contribution rates.
  • •Ensures pension and leave salary benefits are maintained during deputation.

Practical Example

Ms. Anjali Sharma, a Section Officer in the Ministry of Finance, is deputed to the NITI Aayog for a period of two years. According to FR 116, NITI Aayog is responsible for contributing towards Anjali's pension and leave salary during her deputation. The exact rate of contribution is determined by the President's orders. Let's say the current rate, as per the President's order, is 15% of Anjali's basic pay plus dearness allowance. NITI Aayog would then calculate and remit this amount to the Ministry of Finance regularly to ensure Anjali's retirement benefits are protected.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What happens if the organization on deputation fails to pay the contribution?▼
The parent department will likely follow up with the organization on deputation to ensure the contributions are made. Non-payment can affect the employee's pension and leave salary calculations.
Where can I find the current rates of contribution prescribed by the President?▼
The rates are usually specified in orders issued by the Department of Expenditure, Ministry of Finance. These orders are typically circulated to all government departments.
Does FR 116 apply to all types of foreign service?▼
Yes, FR 116 generally applies to all types of foreign service where the employee's pay is drawn from a source other than the Consolidated Fund of India or a State.
Is the contribution rate fixed, or does it change?▼
The contribution rate is not fixed and can be revised by the President through general orders from time to time, depending on various factors.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to F.R. 116, who is authorized to prescribe the rate of contributions payable on account of pension and leave salary for government employees on deputation?

Related Rules

Rule 36Fundamental Rules & Supplementary Rules - Rule 36 - Chapter IIRule 10Fundamental Rules & Supplementary Rules - Rule 10 - Chapter IIRule 1Fundamental Rules & Supplementary Rules - Rule 1Rule 114Fundamental Rules & Supplementary Rules - Rule 114 - Chapter VIIRule 113Fundamental Rules & Supplementary Rules - Rule 113 - Chapter VII

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