7th Pay Commission: Good news! Minimum pension of retired govt staff goes up by 157%

New Delhi, Aug 7: Retired central government employees will now get a minimum pension of Rs 9,000, up 157.14 per cent from the current Rs 3,500, following the implementation of the 7th Pay Commission's recommendations.

The Ministry of Personnel, Public Grievances and Pensions has notified acceptance of pay panel's recommendations for the pensioners. The ceiling 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, a proposal which has been accepted by the government.

There are about 58 lakh central government pensioners. The amount of pension shall be subject to a minimum of Rs 9,000 and the maximum pension would be Rs 1,25,000--which 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.

The ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay, it said. There has been a substantial increase in payment of ex-gratia lump sum compensation for civil and defence forces personnel, payable to the next of kin.

A payment of Rs 25 lakh, from existing Rs 10 lakh, will be given in case of death occurring due to accidents in course of performance of duties and those attributed to acts of violence by terrorists, anti social elements etc.

PTI