Advantages of doing Government Jobs
Main Advantages of Government Jobs:
- Good Salary
One of the biggest advantage why people choose government jobs is because of the high salary it rewards you with. The government employees receive comparatively equivalent or higher salary than the private jobs. Also, government employees receive their salary on time irrespective of the situation unlike private sector jobs where there can be delays in the payments. This is one of the major reasons why people love government jobs.
- Health Insurance and Medi Claims
Health of a person is highly unpredictable. We just don’t know what a person might suffer when. Also, with ever increasing costs of hospitals, it has become difficult to seek good medical care. Keeping these factors in mind, the government provides free healthcare for all the employees working with them. To add up on this benefit, the government also takes responsibility to bear all the expenses of employee’s entire family. No matter how costly the medical costs are, the government will completely take care of it. This also increases employee loyalty of the people who work in the government sector.
- Allowances
For some reasons, if your monthly or even yearly expenses has increased then in such case, you don’t need to worry if you are working in government sector as they will take care of all your extra expenses. For example, you are traveling too much or your grocery shopping has increased considerably, then the government provides you with Dearness Allowances (DA) and Travelling Allowances (TA) that will help you cover all the extra expenditure incurred. These allowances will be provided even if the inflation rates are high. Also, if you wish to travel anywhere in the country, the government will offer you concession on your travel tickets. These benefits are not provided in many private sector jobs but are fully assured in government jobs.
- Vacations
We all love to have vacations where we can spend time with our family and friends. To lower the workload of the employees, the government offers them many holidays throughout the year. This enables an employee to visit their holiday destination and spend the time with their loved ones. In case of private sector jobs, there are hardly any holidays awarded to employees apart from the usual ones. Also, the government may give an employee a weekly off if they are dealing with too much stress. This allows government employees to deal with stress and come back to work with more energy and vigor.
- Housing Benefits
This is probably the best advantage you can take out of a government job. In times where the prices of real estate are going up with every passing day, it has become very difficult for a common man to either buy or rent a house. This is where being a government employee will work in your favor. The government has made such provisions that they provide you a home at government quarters where you can stay with just a nominal amount or at times, completely free of cost. This will allow you to save a good amount of money in housing. However, you can’t stay at the same place after retirement. But this is an advantage which probably no other private company offers.
- Complete Insurance After Retirement
A big disadvantage of working at a private sector is that after you retire, you don’t get enough money which allows you to stay stress free and enjoy the rest of your life peacefully. A pension is necessary to meet your daily expenditure after retirement. It is also helpful when you encounter any health problems in your old age days. But if you are associated with government as an employee then after your retirement you tend to receive complete insurance of your life. Hence, you will not have to worry about your future and can retire peacefully with a handsome amount of money as pension.
- Social Security
In this competitive world where the cost of living is rising day by day and pay slips are getting shorter, it has become a major concern for most of the people to survive without the fear of future. Also, if you are working with a private sector firm, there is no guarantee of job security, one can be thrown out of the company any moment if the company is not making enough profits. This is where government job will benefit you. In governmental jobs, one gets salary on time, free health care, lifelong pension and other allowances that will enable you to live your life without any worries.
- Job Security
Layoffs have become more common in private sectors in the recent years. With companies not making desirable profits, it has become mandatory for them to lay off their employees in order to keep their company running with minimal loss possible. Government layoffs do take place but they are rare and very less as compared to private firms. Working as a government employee allows you to enjoy the benefits of job security. This is also one of the major reasons why people prefer government jobs over private sector jobs.
You may find some of the above advantages in private sector jobs too but having all of them is pretty rare in any other kind of job. These advantages play a major role in the smooth and effective functioning of your life. Also, it leads to a satisfying professional career and retirement. After knowing the advantages of a government job, it is safe to say that government jobs outrun private sector jobs by a huge margin in terms of advantages.
When it comes to identifying which sector is going to give you the career you want, there’s no perfect solution – the right fit for you will depend on your individual circumstances, priorities and career goals.
Considering a career within the Public Sector? Here’s 5 benefits that may sway your decision…
- YOU CAN MAKE A DIFFERENCE IN YOUR COMMUNITY
When public services are done right, they can make a real impact on individuals and communities. These types of public roles are well suited for people who are motivated to make positive changes to benefit those around them.
- IMPROVED WORK/LIFE BALANCE
Generally, the public sector is more reasonable than the private industry due to employment awards and agreements that preserve shorter working hours. Overtime can also be accrued and paid back in flexible leave.
- BOOST YOUR RESUME
In terms of developing a rounded CV, getting experience in different sectors is a positive step. Many public sector jobs provide excellent opportunities to gain experience and build useful new skills. In a government job, there are frequently challenges and complexities that vary from those that you would see in the private sector.
- STAFF TRAINING
Public sector organizations are committed to realizing their staff’s potential. Employees are often encouraged, if not required, to enhance their skills set by participating in training programmes, progressing their profession.
- JOB SECURITY
One of the biggest stressors for people working in the private sector is job security. Businesses in the private sector are always growing, changing, merging, and restructuring which can put a lot of stress people who depend on their income to pay the bills. These kinds of concerns hardly exist in the public sector – the government won’t go out of business like a private company could.
Retirement Benefits
Pension
The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive pension on completion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible to receive family pension on death of her spouse after completion of one year of continuous service or even before completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.
W.e.f 1.1.2006, Pension is calculated with reference to emoluments (i.e.last basic pay) or average emoluments (i.e. average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial.
Minimum pension presently is Rs. 9000 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 1,25,000) per month. Pension is payable up to and including the date of death.
Commutation of Pension
A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under-go medical examination by the specified competent authority.
Lump sum payable is calculated with reference to the Commutation Table. The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).
The formula for arriving for commuted value of Pension (CVP) is
CVP = 40 % (X) Commutation factor* (X)12
* The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the New Table annexed to the CCS (Commutation of Pension) Rules, 1981.
Death/Retirement Gratuity
Retirement Gratuity
This is payable to the retiring Government servant. A minimum of 5 years’ qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay plus Dearness Allowance drawn on the date of retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable for qualifying service of 33 years or more is 16½ times the Basic Pay plus DA, subject to a maximum of Rs. 20 lakhs.
Death Gratuity
This is a one-time lump sum benefit payable to the nominee or family member of a Government servant dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:
| Qualifying Service | Rate |
| Less than one year | 2 times of basic pay |
| One year or more but less than 5 years | 6 times of basic pay |
| 5 years or more but less than 11 years | 12 times of basic pay |
| 11 years or more but less than 20 years | 20 times of basic pay |
| 20 years or more | Half of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments. |
Maximum amount of Death Gratuity admissible is Rs. 20 lakhs w.e.f. 1.1.2016
Service Gratuity
A retiring Government servant will be entitled to receive service gratuity (and not pension) if total qualifying service is less than 10 years. Admissible amount is half month’s basic pay last drawn plus DA for each completed 6 monthly period of qualifying service. This one time lump sum payment is distinct from retirement gratuity and is paid over and above the retirement gratuity.
Issue of No Demand Certificate
Dues owed by the retiring employees on account of Licence Fee for Government accommodation, advances, over payment of pay and allowances are required to be assessed by the Head of Office and intimated to the Accounts Officer two months in advance of the date of retirement so that these are recovered from retirement gratuity before payment. For this purpose the Licence Fee for those in occupation of Government accommodation is taken into account up to the end of the permissible period for which accommodation can be retained after retirement under the Rules on normal rent. The recovery of Licence Fee beyond that period is the responsibility of the Directorate of Estates. If, for any reason final dues cannot be assessed on time, then 10% of gratuity is withheld from gratuity on the basis of a commutation from the Directorate of Estates in this regard.
General Provident Fund and Incentives
As per General Provident fund (Central Services) Rules, 1960 all temporary Government servants after a continuous service of one year, all re-employed pensioners (Other than those eligible for admission to the Contributory Provident Fund) and all permanent Government servants are eligible to subscribe to the Fund. However, these rules are not applicable to any of the Government Servants who join service on or after 1.1.2004. A subscriber, at the time of joining the fund is required to make a nomination, in the prescribed form, conferring on one or more persons the right to receive the amount that may stand to his credit in the fund in the event of his death, before that amount has become payable or having become payable has not been paid. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscriptions to the Provident Fund are stopped 3 months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscriber’s emoluments are not more than his emoluments. Rate of interest varies according to notifications of the Government issued from time to time. The rules provide for drawal advances/ withdrawals from the fund for specific purposes.
The conditions for withdrawal from the fund have been liberalized and now no documentary proof is required to be furnished by the subscriber for GPF withdrawal. On retirement of a subscriber, instructions have been issued for immediate payment of final balance on retirement. No application is required to be submitted by the subscriber for final payment from the fund. .
Deposit Linked Insurance Scheme
Under the GPF Rules, on the death of subscriber, the person entitled to receive the amount standing to the credit of the subscriber shall be paid an additional amount equal to the average balance in the account during the 3 years immediately preceding the death of the subscriber subject to certain conditions provided in the relevant Rule. The additional amount payable under that Rule shall not exceed Rs. 60,000/-. To get this benefit, the subscriber should have put in at least 5 years service at the time of his/her death.
Contributory Provident Fund
The Contributory Provident Fund Rules (India), ,1962 are applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. A subscriber, at the time of joining the Fund is required to make a nomination in the prescribed Form conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid.
A subscriber shall subscribe monthly to the Fund when on duty or Foreign Service but not during the period of suspension. Rates of subscription shall not be less than 10% of the emoluments and not more than his emoluments. The employer’s contribution at that percentage prescribed by the Government will be credited to the subscriber’s account and this is 10%. The Rules provide for drawal of advances/ withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit Linked Insurance Scheme.
Leave Encashment
Encashment of leave is a benefit granted under the CCS (Leave) Rules and is not a pensionary benefit. Encashment of Earned Leave/Half Pay Leave standing at the credit of the retiring Government servant is admissible on the date of retirement subject to a maximum of 300 days.
Central Government Employees Group Insurance Scheme
A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscriber’s accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit (as issued by Department of Expenditure) which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber.