Implementation of Government's decision on the pension recommendation of the Seventh Central Pay Commission
Government of India
Ministry of Personnel, P.G. and Pension
Department of Personnel & Training
New Delhi, the 1st September, 2016.
The Chief Secretaries of
All States/Union Territories.
Sub: Implementation of Government's decision on the recommendation of the Seventh Central Pay Commission- Revision of provisions regulating pension / gratuity / commutation of pension / family pension / disability pension / exgratia lump-sum-compensation, etc-reg.
I am directed to say that in pursuance of Government's decision on the recommendations of the Seventh Central Pay Commission, the Department of Pension & Pensioners' Welfare by its OM No. 38/37/2016- P&PW (A)(i),(ii) and Resolution dated 4th August 2016 (copies enclosed) has issued the necessary detailed order for implementation of Government's decision on the recommendation of the Seventh Central Pay Commission- Revision of provisions regulating pension/gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum-compensation etc. under the CCS (Pension) Rules, 1972 and Commutation of Pension under CCS (Commutation of Pension) Rules 1981, CCS (
Extraordinary Pension) Rules 1939 etc.
2. The applicability of the provisions of aforesaid Office Memorandums of the Department of Pension & Pensioners Welfare to the members of All India Services has been considered. It has been decided that the provisions contained in the aforesaid
Office Memorandum issued by the Department of Pension & Pensioners shall be equally applicable Mutatis-Mutandis to members of All India Service governed by the ATS (DCRB) Rules, 1958.
Encl : as above.
amount of additional pension will be Shown distinctly in the pension payment order, For example, in case where a pensioner is more than BO years of age and his 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 attaining the age of 85 years will be shown as
(i).Basic Pension =-Rs.10,000 and (ii) additional pension = Rs.3,000 pm.
6.1 The rates for payment of death gratuity shall be revised as under:
Length of Qualifying service
Rate of Death Gratuity
Less than one year
2 times of monthly emoluments
One year or more but less than 5 years
6 times of monthly emoluments
5 years or more but less than 11 years
12 times of monthly emoluments
11 years or more but less than 20 years
20 times of monthly emoluments
20 years or more
Half month’s emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments
Accordingly. Rule 50(1)(b) of MS (Pension) Rules, '1972 shall stand modified to this extent.
6.2 The-maximum limit of Retirement gratuity and death gratuity shall be Rs, .20 The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. Accordingly, first proviso under Rule 50(1)(b) of CCS (Pension)
Rules, 1972 shall stand modified to this extent.