Home7th CPC Pension7th CPC : Revision of pension of pre-2016 pensioners / family pensioners

7th CPC : Revision of pension of pre-2016 pensioners / family pensioners

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7th CPC : Revision of pension of pre-2016 pensioners/family pensioners

Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi
Dated : 12th May, 2017

Office Memorandum

Sub:- Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission — Revision of pension of pre-2016 pensioners/family pensioners, etc.

The undersigned is directed to say that the 7th Central Pay Commission (7th CPC), in its Report, recommended two formulations for revision of pension of pre-2016 pensioners. A Resolution No. 38/37/2016-P&PW (A) dated 04.08.2016 was issued by this Department indicating the decisions taken by the Government on the various recommendations of the 7th CPC on pensionary matters.

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2.Based on the decisions taken by the Government on the recommendations of the 7th CPC, orders for revision of pension of pre-2016 pensioners/family pensioners in accordance with second Formulation were issued vide this Department’s OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016. It was provided in this O.M. that the revised pension/family pension w.e.f. 1.1.2016 of pre-2016 pensioners/family pensioners shall be determined by multiplying the pension/family pension as had been fixed at the time of implementation of the recommendations of the 6th CPC, by 2.57.

3.In accordance with the decision mentioned in this Department’s Resolution 38/37/2016-P&PW (A) dated 04.08.2016 and OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016, the feasibility of the first option recommended by 7th CPC has been examined by a Committee headed by Secretary, Department of Pension & Pensioners’ Welfare.

4. The aforesaid Committee has submitted its Report and the recommendations made by the Committee have been considered by the Government. Accordingly, it has been decided that the revised pension/family pension w.e.f. 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. This will be done by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay. While fixing pay on notional basis, the pay fixation formulae approved by the Government and other relevant instructions on the subject in force at the relevant time shall be strictly followed. 50% of the notional pay as on 01.2016 shall be the revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 1.1.2016 as per the first Formulation. In the case of family pensioners who were entitled to family pension at enhanced rate, the revised family pension shall be 50% of the notional pay as on 01.01.2016 and shall be payable till the period up to which family pension at enhanced rate is admissible as per rules. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

5.It has also been decided that higher of the two Formulations i,e. the pension/family pension already revised in accordance with this Department’s OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 or the revised pension/family pension as worked out in accordance with para 4 above, shall be granted to pre-2016 central civil pensioners as revised pension/family pension w.e.f. 01.01.2016. In cases where pension/family pension being paid w.e.f. 1.1.2016 in accordance with this Departments OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 happens to be more than pension/family pension as worked out in accordance with para 4 above, the pension/family pension already being paid shall be treated as revised pension/family pension w.e.f. 1.1.2016.

6. Instructions were issued vide this Department’s OM No. 45/86/97-P&PW(A) (iii) dated 10.02.1998 for revision of pension/ family pension in respect of Government servants who retired or died before 01.01.1986, by notional fixation of their pay in the scale of pay introduced with effect from 01.01.1986. The notional pay so worked out as on 01.01.1986 was treated as average emoluments/last pay for the purpose of calculation of notional pension/family pension as on 01.01.1986. The notional pension/family pension so arrived at was further revised with effect from 01.1996 and was paid in accordance with the instructions issued for revision of pension/family pension of pre-1996 pensioners/family pensioners in implementation of the recommendations of the 5th Central Pay Commission.

7. Accordingly, for the purpose of calculation of notional pay w.e.f. 1.1.2016 of those Government servants who retired or died before 01.01.1986, the pay scale and the notional pay as on 1.1.1986, as arrived at in terms of the instructions issued vide this Department’s OM 45/86/97-P&PW(A) dated 10.02.1998, will be treated as the pay scale and the pay of the concerned Government servant as on 1.1.1986. In the case of those Government servants who retired or died on or after 01.01.1986 but before 1.1.2016, the actual pay and the pay scale from which they retired or died would be taken into consideration for the purpose of calculation of the notional pay as on 1.1.2016 in accordance with para 4 above.

8.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).

9.The pension/family pension as worked out in accordance with provisions of Para 4 and 5 above shall be treated as ‘Basic Pension’ with effect from 01.01.2016. The revised pension/family pension includes dearness relief sanctioned from 1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.

10.The existing instructions regarding regulation of dearness relief to employed/re-employed pensioners/family pensioners, as contained in Department of Pension & Pensioners Welfare O.M. No. 45173/97-P&PW(G) dated 02.07.1999, as amended from time to time, shall continue to apply.

11. These orders would not be applicable for the purpose of revision of pension of those pensioners who were drawing compulsory retirement pension under Rule 40 of the CCS (Pension) Rules or compassionate allowance under Rule 41 of the CCS (Pension) Rules. The pensioners in these categories would continue to be entitled to revised pension in accordance with the instructions contained in this Department’s M. No. 38/37/2016-P&PW(A)(ii) dated 4.8.2016.

12. The pension of the pensioners who are drawing monthly pension from the Government on permanent absorption in public sector undertakings/autonomous bodies will also be revised in accordance with these orders. However, separate orders will be issued for revision of pension of those pensioners who had earlier drawn one time lump sum terminal benefits on absorption in public sector undertakings, etc. and are drawing one-third restored pension as per the instructions issued by this Department from time to time.

13.In cases where, on permanent absorption in public sector undertakings/autonomous bodies, the terms of absorption and/or the rules permit grant of family pension under the CCS (Pension) Rules, 1972 or the corresponding rules applicable to Railway employees/members of All India Services, the family pension being drawn by family pensioners will be updated in accordance with these orders.

14.Since the consolidated pension will be inclusive of commuted portion of pension, if any, the commuted portion will be deducted from the said amount while making monthly disbursements.

15.The quantum of age-related pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-

pre-revision pension

The amount of additional pension will be shown distinctly in the pension payment order. For Example, in case where a pensioner is more than 80 years of age and his/her revised pension is Rs.10,000 pm, the pension will be shown as (i).Basic pension=Rs.10,000 and (ii) Additional pension = Rs.2,000 pm. The pension on his/her attaining the age of 85 years will be shown as (1).Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm. Dearness relief will be admissible on the additional pension available to the old pensioners also.

16.A few examples of calculation of pension/family pension in the manner prescribed above are given in Annexure-1 to this O.M.

17.No arrears on account of revision of Pension/Family pension on notional fixation of pay will be admissible for the period prior to 1.1.2016. The arrears on account of revision of pension/family pension in terms of these orders would be admissible with effect from 01.01.2016. For calculation of arrears becoming due on the revision of pension/ family pension on the basis of this 0.M., the arrears of pension and the revised pension/family pension already paid on revision of pension/family pension in accordance with the instructions contained in this Department’s OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 shall be adjusted.

18. It shall be the responsibility of the Head of Department and Pay and Accounts Office attached to that office from which the Government servant had retired or was working last before his death to revise the pension/ family pension of pre — 2016 pensioners/ family pensioners with effect from 01.01.2016 in accordance with these orders and to issue a revised pension payment authority. The Pension Sanctioning Authority would impress upon the concerned Head of Office for fixation of pay on notional basis at the earliest and issue revised authority at the earliest. The revised authority will be issued under the existing PPO number and would travel to the Pension Disbursing Authority through the same channel through which the original PPO had travelled.

19.These orders shall apply to all pensioners/family pensioners who were drawing pension/family pension before 1.1.2016 under the Central Civil Services (Pension) Rules, 1972, and the corresponding rules applicable to Railway pensioners and pensioners of All India Services, including officers of the Indian Civil Service retired from service on or after 1.1.1973. A pensioner/family pensioner who became entitled to pension/family pension with effect from 01.01.2016 consequent on retirement/death of Government servant on 31.12.2015, would also be covered by these orders. Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners.

20 These orders do not apply to retired High Court and Supreme Court Judges and other Constitutional/Statutory Authorities whose pension etc. is governed by separate rules/orders.

21. These orders issue with the concurrence of Ministry of Finance (Department of Expenditure) vide their 1. D. No. 30-1/33(c)/2016-1C dated 11.05.2017 and 1.D. No. 30-1/33(c)/2016-IC dated 12.05.2017.

22.In their application to the persons belonging to the Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.

23.Ministry of Agriculture etc. are requested to bring the contents of these orders to the notice of Heads of Department/Controller of Accounts, Pay and Accounts Officers, and Attached and Subordinate Offices under them on top priority basis. All Ministries/Departments are requested to accord top priority to the work of revision of pension of pre-2016 pensioners/family pensioners and issue the revised Pension Payment Authority in respect of all pre-2016 pensioners.

24. Hindi version will follow.

(Harjit Singh)



(Reference Para 16 of OM No. 38/37/2016-P&PW(A) Dated 12th May,2017)

S.No Description 1st case  2nd Case 3rd Case 4th Case
1. Date of Retirement 31.12.1984 31 01.1989 30-06.1999 31.05.2015
2. Scale of Pay (or Pay Band &G.P.) at the time ofretirement
Notional pay scale as on1.1.1986 for those retiredbefore 1.1.1986
(4th CPC Scale)
(4th CPC Scale)
(5th CPC Scale)
(6th CPC Scale)
3. Pay on retirement
Notional pay as on 1.1.1986 for those retired before 1.1.1986
1210 4000 4800 79000
4. Pension  as on 01.01.2016 before revision 4191 12600 5424 39500
5. Family pension as on 01.01.2016 before revision 3500 7560 3500 23700
6. Family pension at enhanced rate as on 01.01.2016 before revision (if applicable) NA N.A. NA 39500
7. Revised pensionby multiplying pre-revised pension by 2.57 10771 32382 13940 101515
8. Revised family pension bymultiplying pre-revisedfamily pension by 2.57 9000 19430 9000 60909
9 Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57 NA NA N.A. 101515
10. Pay fixed on notional basison 1.1.1996 3710
11. Pay fixed on notional basison 1.1.2006 8910
(PB-I, GP 2000)
(PB-3, GP 6600)
(PB-1, GP-2400)
12. Pay fixed on notional basison 1.1.2016 23100
(Level 3)
13. Revised pension w.e.f.1.1.2016 as per first formulation. 11550 35900 14800 102550
14. Revised family pensionw.e.f. 1.1.2016 as per firstformulation. 9000 21540 9000 61530
15. Revised family pension atenhanced rate w.e.f. 1.1,2016 as per first formulation. NA N.A. N.A. 102550
16. Revised pension payable(Higher of S. No. 7 and 13) 11550 35900 14800 102550
17. Revised family pensionpayable (Higher of S.No. 8 and 14) 9000 21540 9000 61530
18. Revised family pension atenhanced rate payable(Higher of S.No. 9 and 15) NA N.A. N.A. 102550

Order Copy

Also Read : How to calculate 7th CPC Pension for Pre-2016 Pensioners based on 12th May 2017 Order

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  1. I was medical board out in 31-03-2000 no compassionate appointment was not given my son as per the new pension oder 25-08-2020 disability pension may plz be granted for me

  2. Hai sir
    I am retired to 30/09/2017
    Pls tell me my 7th cpc.pension
    Revised arryers amount
    Till now increse amont
    Ya new pension scale

  3. Paragraph 4 of the O M dt.12-5-17 treats option 1 recommended by the 7CPC as not feasible. The main reason are non availability of records for about 18.8 percent of pre 1.1.2016 civil pensioners and likely anomalies. This tentamounts to denial of that option to the remaining 81.2 percent of those pensioners for whom such records are likely to be available. Also, a committee has already been appointed by Government to attend to anomalies. Hence, to meet the end of justice, pre 1.1.2016 pensioners (they are about 81.2 percent) should be given the 7CPC option 1 also, in addition to 2 options of that O.M. if relevant records for them are available.

  4. Ref: News in Malayala Manoramma Dated 12/11/2017. It is reported in Malayala Manoramma daily on 12/11/17 that the National Anomaly Committee will give its report by the middle of Dec.2017 and the Central Govt. is likely to implement the recommendations by April, 2018 and that the minimum wages is likely to be increased from Rs. 18000/- to Rs. 21,000/- and fitment factor is likely to be raised from 2.57 to 3. Pl. see the details in M.Manoramma daily dated 12/11/17. Pensioners case is not mentioned in the M.Manoramma’s report. Is it not applicable to the Pensioners. Pensioners Assn. may kindly take it up with the Anomaly Committee before a final decision is taken. After about 38 years of Govt. service I have retired as a Gr.B.Gazetted from Central Excise H.Qrs Office, COCHIN 18. .I have worked about 10 years in the Gazetted Post. But my retirement Gratuity was less than Rs. 2 Lac. It is now raised to Rs. 25 Lac. or so with out considering us.. Govt. of India is not giving justice to old Pensioners. Similarly I have worked as Administrative Officer, Asst. Chief Accounts Officer, Examiner of Accounts etc (all are of same pay scale and transferable) and equal to the same Pay Scale of Superintendent of Central Excise while I was in service in the Central Excise.. at the time of my retirement from Central Excise. But now after the implementation of 5th C.Pay Commission report I am getting a less pay scale than the Superintends. The grade pay is also less than Superintendent. Is it possible to reduce pay Scale after retirement. I have immediately represented to the Commissioner of Central Excise Cochin 18 by Regd. Post. and issued reminders. I did not receive a reply from the Department. I request the anomaly Committee to kindly take up this case also and help this old pensioner also. If I am asked I will submit all available details to the committee K. L. JOSEPH (Joy Kaniyamparambil), S. H. Mount Post, KOTTAYAM 686 006, KERALA. Ph. 9400563626, Pand Ph.0481 2563626. Dated 14/11/2017.

  5. Iam to invite your kind attention that the major autonoimous organisations are immplemented the 7th pay commission recommendations for their.

    employees and pensioners. .The ministry of AYUSH is not immplemmented the same for their employees and pensioers,This has been discussed with the Hon.Minister

  6. The CSIR, the largest autonomous body has adopted the recent pay commission for its employees as well as for the pensioners. The Ministry of Ayush, which has a separate Minister to look after the welfare of its employees as well as the pensioners has not taken any action to pass on the revision to its employees and pensioners in the various research councils like ccras. It is hightime the Ministry issues the order to circumvent the misery of its serving and retired employees who have been the backbone of research in tsm field.

  7. The fitment tables based on which the concordance tables have been issued were in turn based on the normal replacement pay scales granted by the earlier pay commissions. These tables are applicable only to such cases-vide OM F. No.1/1/2008-IC dated 30-8-2008 (para 2(ii) .As per 6th cpc pay scales of a number of posts were either merged with higher scales or pre-revised scales upgraded and corresponding higher gradepays granted. Two pay fixation methods-one applicable to normal replacements and another applicable to upgraded cases-were prescribed. As per first method, the pay in the pay band is arrived by multiplying the basic pay on 1-1-2006 by 1.86 and grade pay applicable to normal replacement scale is added. Under the second method, the pay in the pay band is arrived in the same manner, but the grade pay applicable to upgraded scales is added. Vide Rule 7 and Note 2A and 2B of ccs ( revised pay) rules 2008. Thus in upgraded cases fixation of notional pay and pension revision based on the concordance tables wiil not be correct and needs to be done separate from the tables. There will be increase in pension if done so. B.Appi Reddy, Guntur (a.p)

  8. The pensioners, retired from central autonomous bodies are suffering lot who are spending a huge portion of their pension to buy medicines and for their self and spouse medical treatment. in their older days with so many financial constraint.. What sins they have done, don’t know, , the Govt. is not ready to revise their pension as per VII CPC.. The Govt. should consider their appeal and immediately issue orders to the Administrative Ministry concerned to release their pension as per VII CPC without any further delay..

  9. The present Govt. is doing injustice by not implementing the VII CPC benefits to the employees and pensioners of central autonomous bodies. On one hand, the Govt. is telling that the Administrative Ministry concerned will take action for implementation of VII CPC benefits and on other hand that 30% of the burden on account of implementation of the VII CPC to the autonomous bodies will be shouldered by the Govt. How Govt. can expect 30% of the revenue can be generated in the small central autonomous bodies like National Institute of Siddha, Chennai, working under Ministry of AYUSH where medical treatment in the Indian System of medicine i.e. Siddha provided free of cost to the public. Hence, the Govt. should not delay further and implement the VII CPC benefits, immediately.

  10. I am looking for my revised PPO as i have not received the same. I retired on 01 June 2004. My bankers are Syndicate bank,AGI Bhawan,Rao Tula Ram Marg. New Delhi.

  11. There are several autonomous bodies which have very small number of staff like CCRAS under the Ministry of Ayush, the pensioners are still less in number. Non-implementation of 7th Pay commission in these autonomous organisations is totally unjustified since the employees are all covered under the same Central Civil Service Rules. It is requested that justice be done at the earliest. This is a common problem to all autonomous bodies like CSIR, ICAR etc.

  12. Let me that as I retaired from Rly service on30.4.1014.and is there any enhancement is take place. Recently the govt of announced that who retaired before 1.1.2016will 2to 3 percent. Kindly infom according.

  13. Please let me know my revised pension from 1 Jan 2016 with pay of Rs 51,910– in PB 4 with GP of 8700 . I retired from service on 31 Oct 2013

  14. kindly inform me when we will be getting 7th pay commission.worked in Export Inspection Council/Agency under MOC&I.

  15. Kindly inform me my pension revised from 1/1/2016 I am retired sep2009 with gp4200 pension?8870 please inform me current pension

  16. Every thing for central govt employees . Nothing for autonomous pensioners. Still they are waiting for Dearness relief orders from July 2016 and jan 2017. Revision of pension as per 7th pay commission is a distant dream


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