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Minimum pension of retired govt staff goes up by 157%

Retired central government staff will get pension according to 7th Pay Commission's recommendations

Policy Pulse
Publish Date: Aug 7 2016 12:38PM | Updated Date: Aug 7 2016 12:38PM

Minimum pension of retired govt staff goes up by 157%

Following the recommendations of the 7th Pay Commission's report, now the retired central government employees will now get a minimum pension of Rs 9,000. The approximate hike in the pension is about 157 per cent.


The employees are currently getting, minimum Rs 3,500 pension per month. The limit of gratuity has also been enhanced from the existing Rs 10 lakh to Rs 20 lakh.


The Commission had also recommended the ceiling on gratuity to be raised by 25 per cent whenever Dearness Allowance rises by 50 per cent. This proposal was also accepted by the government. 


The Ministry of Personnel, Public Grievances and Pensions has notified acceptance of pay panel's recommendations for the pensioners. There are about 58 lakh central government pensioners, who will receive the benefit.


The amount of pension shall be subject to a minimum of Rs 9,000 and the maximum pension would be Rs 1,25,000. This is 50 per cent of the highest pay in the government, an order issued by the Ministry said. 


The highest pay in the government is Rs 2,50,000 with effect from January 1, 2016. The maximum limit of retirement gratuity and death gratuity shall be Rs 20 lakh, the order said.