Revised Remuneration and Eligibility for Retired Engineers in ESIC · W-11/12/1/ContractualEngineer/2024-PMD

W-11/12/1/ContractualEngineer/2024-PMD

[Image omitted. See the official document.]

W-11/12/1/ContractualEngineer/2024-PMD 12-10-2026

Circular

To,

All Regional Directors

Employees' State Insurance Corporation,

Subject: Revision of remuneration and eligibility criteria for engagement of retired Engineers on contractual basis in ESI Corporation.

Sir/Madam,

Please refer to the subject cited above. In this connection, it is to inform that the Employees’ State Insurance Corporation, in its 198th Meeting held on 30.06.2026, has approved the proposal regarding “Revision of Remuneration and Eligibility Criteria for Engagement of Retired Engineers on Contractual Basis in ESIC”, with the following provisions:

A. Revised Remuneration Structure

Note: For retired Central/State Government employees, the basic pension to be deducted shall be the pension as fixed at the time of retirement, and shall include any portion of pension that has been commuted — i.e., the deduction is with reference to the full (pre-commutation) basic pension, irrespective of the amount of pension actually being drawn. The consolidated remuneration so fixed shall remain unchanged for the entire term of the contract; no annual increment, percentage increase or Dearness Allowance shall be payable during the contract period [Ministry of Finance O.M. No. 3-25/2020-E.IIIA dated 09.12.2020, paras 6.1 to 6.3].

The above remuneration structure shall be reviewed and revised periodically by ESIC Headquarters in order to maintain parity with prevailing market conditions.

B. Eligibility Criteria for Contractual Engagement

All such engagements shall further be subject to the fulfilment of the following:

• Such engagements shall not be made as a matter of routine practice and shall be resorted to only in justified exigencies of official work and only against the sanctioned vacant posts of engineering personnel in the Region until such posts are filled through regular channel (deputation/direct recruitment).
• Before initiating such engagement, the Regional Director may ascertain the requirement of engineers maximum upto the sanctioned strength and duration required, workload and functional requirements of the concerned units, in consultation with the Medical Superintendents/Deans of the respective ESIC institutions in the Region and, wherever required, with the Divisional Head, PMD/Chief Engineer at Headquarters.
• Engagement shall be made discipline-wise (Civil/Electrical) against the vacant post of the corresponding discipline. Retired Engineers having experience in building construction and maintenance shall be given preference over those having experience in other fields such as roads, irrigation and mining.
• Upon joining of a regular incumbent against the post on which the contractual Engineer is engaged, the contractual engagement shall be liable to be terminated by giving one month’s notice. However, where a sanctioned vacant post of the same level and discipline is available in any other establishment within the Region, the Regional Director may, with the consent of the contractual Engineer, offer continuation of the contractual engagement against such post for the unexpired period of the existing contractual term. Such continuation shall be on the same terms and conditions as applicable to the existing contractual engagement, except that the admissibility of Transport Allowance shall be regulated as per the place of the new posting.
• Prescribed experience and competency requirements as applicable to the respective post.
• Verification of credentials, service record and character/antecedents of the retired officer prior to engagement.
• Submission of a certificate/undertaking by the retired officer confirming that he/she is not simultaneously engaged in any other assignment, consultancy or contractual capacity that would conflict with, or detract from, his/her obligations to ESIC.

C. Allowances Admissible During Contractual Engagement

• No House Rent Allowance (HRA) shall be admissible.
• No Dearness Allowance and no annual increment/percentage increase shall be admissible on the consolidated remuneration during the contract period.

Transport Allowance (for commuting)

• An appropriate Transport Allowance for commuting between the residence and the place of work shall be admissible to retired employees engaged as contractual Engineers at the rate applicable to the post against which they are contractually engaged in ESIC. The rate of Transport Allowance shall be determined in accordance with Department of Expenditure O.M. No. 21/5/2017-E.II(B) dated 07.07.2017, with reference to the corresponding Pay Level of the contractual post as mentioned in Table at Para D and place/city of posting. It shall remain fixed throughout the period of contractual engagement and no DA will be applicable on the Transport allowance.
• Transport Allowance is distinct from, and shall not be conflated with, TA/DA admissible on official tour (Para D below).

D. Travelling Allowance / Daily Allowance - Official Tours

• Retired employees engaged as contractual Engineers shall be entitled to TA/DA for official tours as admissible to the post against which they are contractually engaged in ESIC, with reference to the corresponding Pay Levels prescribed under 7th CPC as detailed below:

The following conditions shall additionally apply:

• TA/DA on tour shall be admissible strictly for journeys undertaken on the specific written direction/approval of the appropriate Authority (Regional Director/Dean/Medical Superintendent as applicable) in connection with official work, and shall be claimed on the standard TA Bill proforma with supporting tickets/vouchers or self-certified claims, as admissible under the extant TA Rules.
• No TA/DA shall be admissible for local journeys within the headquarters/city of posting, or for the journey performed to join the contractual assignment or on its relinquishment/completion;

E. Leave

• Paid leave of absence may be allowed at the rate of 1.5 days for each completed month of service.
• Accumulation of leave beyond a calendar year shall not be allowed.

F. Term of Appointment

• The term of appointment shall ordinarily be for an initial period not exceeding one year, extendable by another one year, subject to certification of satisfactory performance by the appointing authority.
• The maximum permissible age for engagement on contractual basis shall be below 65 years as on the date of commencement of the contractual engagement for all categories of contractual Engineers, namely, Junior Engineer (JE), Assistant Engineer (AE), and Executive Engineer (EE). The contractual engagement shall, in any case, not continue beyond the date on which the individual attains the age of 65 years.
• The offer of engagement and the Agreement shall provide that the contractual engagement may be terminated by either side by giving one month’s notice in writing (or payment of one month’s consolidated remuneration in lieu thereof), and that it shall cease on joining of a regular incumbent as provided in Para B.