Home7th CPC Pension7th Pay Commission Minimum Pension of Rs.9000 for Central Government Pensioners

7th Pay Commission Minimum Pension of Rs.9000 for Central Government Pensioners

7th Pay Commission Minimum Pension of Rs.9000 for Central Government Pensioners

The Ministry of Personnel, Public Grievances and Pensions has released the office memorandum F.No.38/37/2016-P&PW(A)(ii) dated 4th August 2016 of the 7th pay panel’s recommendations for the pensioners.

As per the 7th Pay Commission Pension Order, the retired central government employees will now get a minimum pension of Rs 9,000, from the current Rs 3,500.

As per Office Memorandum, para 4.4

“4.4. The minimum pension with effect from 01.01.2016 will be Rs. 9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50% and 30% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 with effect from 01.01.2016).”

Also refer para 5 in the above said OM

“5. Where the revised pension /family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016.”

So, the Minimum pension will be Rs. 9000/- and maximum pension will be 2,50,000 with effect from 01.01.2016

Multiplication factor

Basic pension shall be multiplied by 2.57

As per para 4.1 in the above said order,

“4.1 For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.”

Example 1

Pensioner ‘A’ retired at last pay drawn of Rs.79,000 on 31st May, 2015 under the 6th CPC regime in the scale of Rs.67000-79000 :

Amount in Rs.
1 Basic Pension fixed in 6th CPC 39500
2 Revised pension fixed under 7th CPC (using a multiple of 2.57) 101515

Example 2 :

Pensioner ‘B’ retired at last pay drawn of Rs.4,000 on 31st January, 1989 under the 4th CPC regime in the pay scale of Rs.3000-100-3500-125-4500:

Amount in Rs.
1 Basic Pension fixed in 4th CPC 1940
2 Basic Pension as revised in 6th CPC 12600
3 Revised Pension fixed under 7th CPC (Using a Multiple of 2.57) 32,382

Based on the latest order, we have updated the calculation method in the 7th Pay Commission Pension & Arrears Calculator, check the latest pension details in the following link.

7th CPC Pension & Arrears Calculator – Updated on 6th Aug 2016

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11 COMMENTS

  1. I think above information are very useful in r/o departmental exam….i heartly thanks to igecorner for given such valueble info.

  2. Sir , I retired from defence on 31 Aug 2016. My basic pension 10875 after accumulation 5337 plus 125persent da. I am getting 18682 as per 6 pay . What is my new pension as 7th pay

  3. Sir i retiredon 1.1.1991 .6th pay commission fixed my basic pension as 5523 .as per goi order the pension is revised as6750 butcpo not ordered sbi awaiting for order my pp0 no.240559202159

  4. In minimum pension it needs Maths tuition for a long period as fixed 9000 -7875(3500+4375 -da 125%)=1125 is only 14.28%.How it is 157% which needs MATHS tuition for the and by how.

  5. V.Mareesan says
    August 8, 2016 at 11.48 am

    As per para 5,the maximum pension will be 50% 30% {ie} 1 25 000 and 75000/- of Rs
    250000/-

  6. As per para 4.1. of the aforesaid O.M., the resultant pension arrived at by multiplying the 6th CPC basic pension with 2.57 should be rounded off to the next higher rupee. But as per the tool, when the basic pension of Rs.5,585/- in the grade pay of Rs.2,800/- (in the scale 5200-20200), the fraction has been ignored. The resultant figure is 14,353.45 and it should be rounded off to Rs.14,354/- and not Rs.14,353/-. Please correct the tool.

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