7th Pay Commission: Millions to get better pensions
New Delhi: Millions of retired central government employees will be
able to get better pensions under the new pension rules have been made
on 7th Pay Commission recommendations.
This new pension rules
should cheer retired employees. They will get a higher pension packet
and arrears from this month from exchequer with the centre issuing on
Thursday the Resolution and Office Memorandums the F.No
38/37/2016-P&PW(A)(i) and the F.No.38/37/2016-P&PW(A)(ii)
respectively.
The revised pensions are higher than what the get now.
Although
the move benefits the cross-section of retired employees, those in
higher brackets have gained more in real terms. New pensions for defence
and railway personnel will be notified separately.
Older
pensioners have an added reason to rejoice. Those over 80 years will get
an additional 20% of their basic pension. This goes up by 30%, 40%, 50%
and 100% for those over 85, 90 95, and 100 respectively.
To get
an idea of the quantum of hike, a person with a basic pension of Rs
12,600 — who used to get Rs 28,350 (with Dearness allowance 125%) in
hand — will now receive a total pension of Rs 32,382. The new rates are
effective from January 2016 and the arrears will be given out in one
installment during this month.
The maximum gratuity too has been
revised to Rs 20 lakh, up from the earlier Rs 10 lakh. The ceiling on
gratuity will increase by 25 per cent whenever the dearness allowance
rises by 50 per cent of the basic pay.
A payment of Rs 25 lakh,
from existing Rs 10 lakh, will be given to the next of kin 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.
GOLDEN SMILES
- Minimum
pension Rs Rs 9,000, up from earlier Rs 7,875 (with Dearness allowance
125%) in hand (revised pension to be effective from January 1, 2016).
- Maximum pension Rs 1,25,000, up from Rs 1,01,250 (with Dearness allowance 125%).
- Maximum gratuity up to Rs 20 lakh (depending on years of service and last salary drawn).
- The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay.
- Incremental additional pension for those 80 years and above. People over 100 to get double pension.