Minimum pension: How retired central government employees benefited

Central government pensioners and employees should know that the minimum pension of the central government employees used to be Rs 1,275 as per the 5th pay commission.

Every year many central government employees retire. There are many behind them who in turn are set to superannuate. This is a continuous process. Central government has over 1.1 crore employees including present and retired employees - about 48.41 lakh Central Government employees and 62.03 lakh pensioners. After decades of work, one of the biggest concerns for both the central government employees is pension and confusion thereof especially about minimum pension.

These pensioners and employees should know that the minimum pension of the central government employees used to be Rs 1,275 as per the 5th pay commission. However, the 7th CPC had brought much-awaited cheer for the employees and pensioners. It had increased the pension by 2.57 times besides increasing the minimum basic salary to Rs 18,000.

How pension changed:

"The Department of Pension and Pensioners Welfare stated that as per the orders issued after V CPC, the minimum pension in the government was Rs 1,275. The normal revised consolidated pension of a pre-2006 pensioner is 2.26 of the pre-revised basic pension. The revised minimum pension of Rs 3,500 is much more than 2.26 time of the pre-revised pension of Rs 1,275," the 7th CPC had said in its report. 

After the commission's recommendations were accepted by Centre, minimum pay increased from the existing Rs 7,000 per month to Rs 18,000 per month, the 7th CPC report had added, "Based on the computation of pension, will raise minimum pension from the existing Rs 3,500 to Rs 9,000. The minimum pension based on the recommendations of this Commission will increase by 2.57 times over the existing level." 

When does a central government employee become eligible for pension? 

It's notable that a central government employee becomes eligible for pension only after 10 years in service. In the case of Family Pension, the widow of an employee becomes eligible for a family pension if the spouse had completed one year of continuous service or even before completion of one year if he had been examined by the appropriate Medical Authority and declared fit for Government service.