The finance ministry is working on norms to regulate salary of the retired central government employees reappointed on a contract basis. The ministry has also proposed to keep nomination-based appointments at "bare minimum".
The Ministry of Finance has said that there is no uniform guideline for regulating the payment of central government employees appointed on a contract basis, including as a consultant.
Henceforth, the Department of Expenditure has framed draft regulations for salary payments in case of an appointment of retired central government employees. The expenditure department has invited comments from ministries or departments within 10 days.
The draft guidelines said a fixed monthly amount shall be admissible, arrived at by deducting the basic pension from the salary drawn at the time of retirement. It shall be termed as "salary".
"The amount of salary so fixed shall remain unchanged for the term of the contract," it added.
The draft guidelines also stated that appointment of retired employees on a contract basis, including as consultants, by way of nomination based on the credentials of past service and not through open market advertisement, should not be made as a "matter of practice and must be kept at a bare minimum".
It said house rent allowance (HRA) shall be paid, except in those cases where a special dispensation is allowed by the Appointments Committee of the cabinet.
Such appointments shall be for an initial period of up to one year and may be extendable up to an age of two years more than the age of superannuation.
"...in no case shall it be extended beyond the age 5 years more than the age of superannuation," the draft guidelines said.
It further said that in cases where the appointment of retired central government employees is made from an open market, then the remuneration may be regulated as per the terms and conditions of the contract.