Local Government members, who complete their tenure of five years this June, will not get provident fund as retirement benefits. No deduction was made from their monthly salary for the provident fund.
For a member to get provident fund, a monthly contribution must be made for at least a year.
By the time, the home ministry distributed the act to the local government, it was December, 2015.
The Local Government Members Entitlement Act was enacted by the Parliament in July, last year. The home ministry got the act a month later.
But, the local leaders will get gratuity.
Gratuity is a monetary reward calculated from the last month’s salary with the number of years in the service.
