7th Pay Commission: Central govt employees' pension to change as per recommendations

7th Pay Commission: There is something to cheer for the central government employees and pensioners as Modi government has cleared the confusion related to pension and other retirement benefits issued to the employees. The Centre has accepted the recommendations of the Seventh Central Pay Commission (CPC) on pensionary benefits to the Central Government employees, including employees of the union territories and members of all India services subjected to certain modification.

This means that all the central government employees, including the Central Armed Police Forces, whose retirement date was before January 1, 2016, will see change in the pay matrix after recommendations from the 7th pay commission.

After the 7th pay commission's recommendations were accepted by Centre, the minimum basic salary of central government employees increased to Rs 18,000 per month from 7,000 earlier, while pension was hiked by 2.57 times.

"The Department of Pension and Pensioners Welfare informed that according to the orders issued after Vth CPC, the minimum pension in the government was Rs 1,275. The normal revised consolidated pension of a pre-2006 pensioner is 2.26 of the pre-revised basic pension. Adding to it, the revised minimum pension of Rs 3,500 is much more than 2.26 times of the pre-revised pension of Rs 1,275," said the 7th CPC in its report.

It is noteworthy that a central government employee becomes eligible for pension only after he is appointed in a pensionable establishment on or before December 31, 2003 and he should complete 10 years in service. In the case of family pension, the widow of an employee becomes eligible for a family pension if the spouse had completed one year of continuous service.

Edited by Chitranjan Kumar