7th CPC – Minimum Pension of Rs.9000 for Central Government Pensioner

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.”

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