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

Retired central government employees will now get a minimum pension of Rs 9,000, up 157.14% 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% whenever Dearness Allowance rises by 50%, 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% 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% whenever the dearness allowance rises by 50% 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.

Deaths occurring in border skirmishes and action against militants, terrorists, extremists, sea pirates and while on duty in the specified high altitude, unaccessible border posts, on account of natural disasters, extreme weather conditions will now entail a compensation of Rs 35 lakh instead of the earlier Rs 15 lakh.

Instead of Rs 20 lakh, an amount of Rs 45 lakh will be paid as ex-gratia to the kin in case of death of a government employee during enemy action in war or other war-like engagements, and "death occurring during evacuation of Indian nationals from a war-torn zone in foreign country", the Personnel Ministry's order said.

A Committee of Secretaries has been constituted to examine the pay panel's recommendations on fixed medical allowance and constant attendance allowance.

The Commission had not recommended enhancement of fixed medical allowance, which is Rs 500 per month, whereas on constant attendance allowance, it suggested that it may be increased by a factor of 1.5 i.e. to Rs 6,750 per month. The allowance needs further increase by 25 per cent each time DA rises by 50 per cent, it had said.

These recommendations are to be examined by a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman, and Secretaries of Home Affairs, Defence, Posts, Health & Family Welfare, Personnel & Training and Chairman, Railway Board as Members.

Till a final decision is taken based on the recommendations of the Committee, fixed medical and constant attendance allowances shall be paid at existing rates, the Personnel Ministry has said.

The revised provisions shall apply to government servants who retire or die in harness on or after January 1, 2016.