New Delhi, Aug 16 (IANS): The Department of Expenditure, under the Finance Ministry, has come up with draft guidelines for regulation of salaries of retired Central government employees, appointed on contract or as consultants, with the government.

The office memorandum with the draft guidelines noted that there is a need to regulate salary in cases of contract appointment of retired Central government employees on uniform basis.

"The matter has, therefore, been considered and it has been decided that regulation of salary in case of appointment of retired Central government employees on contract basis, including as consultants, shall be regulated as provided hereunder," it said.

In terms of contract appointments made on nomination basis, the guidelines said that such appointments shall not be made as a matter of practice and must be kept at a "bare minimum".

"Such appointments may be made only in the justified exigencies of the official work where public interest is served by the appointment of the retired employee," it said.

It proposed that a fixed monthly amount shall be arrived at in such cases by deducting the basic pension from the salary drawn at the time of retirement. The amount to be drawn during the contract will be termed as "salary" and will remain the same during the term of the contract.

Further, if the proposed guidelines get implemented, no increment and dearness allowance shall be allowed during the term of the contract to those appointed by nomination.

Also regarding contractual appointments on the basis of nominations, no house rent allowance shall be admissible ordinarily, except in those cases where special dispensation is allowed by the Appointments Committee of the Cabinet.

In cases where the appointment of retired employees is made on an open market basis, then the remuneration may be regulated as per the terms and conditions of the contract and as such, there will be no need to deduct pension.

"The terms of the appointment and the age up to which the appointment can be made shall also be as per the terms of the contract, provided the term of appointment shall not ordinarily go beyond 5 years after the age of superannuation of the appointee," the guidelines said.

The office memorandum, dated August 13, has sought comments and views from all ministries and departments of the Centre within 10 days of the issue of the communication.