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.
