12 Dec, 2021 12:12 AM

Allowed and restricted income sources for Central Government Employees

It is a well-known fact that a Government staff cannot do any private business. The Central Government Employees are prohibited from engaging in any trade or business under the All India Service Rules (Conduct) of 1968. Other rules ban the same behaviour, such as the Central Government (Conduct) Rules. Employees of the government are prohibited from engaging in private enterprise without prior approval from the government. State government employees have different service rules than central government employees, but state governments have modelled their rules based on the union government.

According to the CCS Rules, 1964, no Government employee shall without the previous sanction of the Government,

Engage directly or indirectly in any trade or business
Undertake or negotiate for any other employment
Canvass for an elective candidate or hold any elective office
Portray support for any insurance or commission business owned or managed by any of his family members
Engage in registration, promotion management of any bank or company registered or liable to register under the Companies Act 2013 or any co-operative society for commercial purposes; other than to discharge his official duties
Associate himself in any sponsored media program produced by a private agency including video magazine, except in an official capacity where the program is commissioned by the Government
Accept any fee for work done by him for a private or public body, unless the government orders so.
Sublet or allow any occupation to be conducted in the Government accommodation provided to him.

At the same time, the rules permit the central government employees to work in certain areas without prior approval of the Government. Those are

Participate in social or humanitarian honorary work
Work on literary, artistic, and scientific projects on a sporadic basis
As an amateur, participate in sports activities.
Except in circumstances of holding elective office, participate in the registration, promotion, or management of literary, charitable, or scientific work, or of a comparable club or organisation aimed at sports, cultural, or recreational activities, registered under the Societies Registration Act, 1860.
Except in circumstances of elective office, participate in the registration, promotion, or management of a Co-operative society that is primarily for the benefit of Government employees and is registered under the Co-operative Societies Act of 1912.

Even though business is not allowed, GG Staff are allowed to earn money through some other limited sources or activities such as

Farm/agricultural income
Income from renting of their property
Investment in shares. But cannot engage in intraday trade or speculative activities.
Rewards from government
Honorarium from various types of permitted activities like taking lecture in Academies
Special pay when posted in National Academy (around 24% of total pay)
Deputation and hard-duty allowance
Special pay for several types of assignment
Daily allowance in foreign postings and tours
Royalty from books and publications

Even though the restriction remains, there are a lot of employees resorting to various activities or businesses for additional income. However, if caught and proved, it is liable for disciplinary action which can even result in loss of job along with the withdrawal of retirement benefits. There are still others who are involved in business under the name of wife, children, or family members. Here it's a question of ethics. There are a lot of reasons why the other incomes are restricted for government employees.

A Government employee is expected to discharge his duties towards the public with the utmost integrity and objectivity. Carrying on their own private business may compromise their duties towards the nation which cannot be allowed. Most of the Government employees form part of the legislative bodies in the country and taking up business will lead to a conflict of interest. There are also chases for corruption in the interest of the business.

To summarise, a government employee who desires to start a private enterprise must resign from his 'Government Post' before proceeding with his own venture.

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