7th Pay Commission: What Are The Changes At Retirement, In Gratuity And Family Pension?

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The Ministry of Personnel, Public Grievances and Pensions has notified the acceptance of the pay panel's recommendations for pensioners.

The Seventh Central Pay Commission, has modified the following rules regulating pension, retirement, death, service gratuity, family pension, ex-gratia lumpsum compensation, etc.

The revised provisions as per these orders will apply to Government servants who retire/die in harness on or after 1.1.2016.

7th Pay Commission: What Are The Changes At Retirement, In Gratuity And Pension?

1) Basic pay

Basic pay in the revised pay structure, which means the pay drawn in the prescribed level in the Pay Matrix with effect from 01.01.2016 but does not include any other type of pay like special pay, etc.

2) Family pension

The amount of enhanced family pension will be 50% of basic pay in the revised pay structure and shall be subject to a minimum of Rs 9000 per month and maximum of 50 per cent of the highest pay in the Government.

For example, in case where a pensioner is more than 80 years of age and his pension is Rs 10,000 per month, the pension will be shown as (i) Basic pension  = Rs 10,000 and additional pension = Rs 2,000 pm.

Once he attains the age of 85 years, it will be shown as (i) Basic Pension = Rs1 0,000 and (ii) additional pension = Rs 3,000 pm.

3) Gratuity

The maximum limit of retirement gratuity and death gratuity will be Rs 20 lakh, as per the order. The ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay, ii added.

4) Death

A payment of Rs 25 lakh, from existing Rs 10 lakh, will be given in case of death occurring due to accidents.

5) Ex-gratia lump sum

The amount of ex gratia lump sum compensation available to the families of Central Government Civilian employees, who die in the performance of their bona fide official duties under various mentioned circumstances.

6) Pension

The amount of pension shall be subject to a minimum of Rs 9000/- and the maximum pension would be 50% of highest pay in the Government. The highest pay in the government is Rs 2,50,000 with effect from January 1, 2016.

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Story first published: Monday, August 8, 2016, 12:45 [IST]
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