Govt raises upper ceiling of family pensions from ₹45k to ₹125k per month

The statement further outlined that since the highest pay has been revised to ₹250,000 taking into account the recommendations by seventh Central Pay Commission (CPC) recommendations.

In a bid to bring ‘ease of living’ to the family members of deceased government employees, the Department of Pension and Pensioners' Welfare (DoPPW) has decided to raise the upper ceiling of family pensions from ₹45,000 to ₹1.25 lakh per month.

The existing rule states that if both parents are government employees and one of the parents dies either during service or post-retirement, the family pension in respect of the deceased becomes payable to the surviving spouse. (HT Archive/iStock)

Union minister Jitendra Singh after making the announcement said, “The amount of both the family pensions will now be restricted to ₹1,25,000 per month, which is over two and half times higher than the earlier limit.” He further added that the DoPPW has issued a clarification on cases of the amount admissible in case a child becomes eligible to draw two family pensions in case of death of both parents.

“In accordance with sub-rule (11) of rule 54 of the Central Civil Services (Pension) Rules 1972, in case both wife and husband are government servants and are governed by the provisions of that rule, on their death, the surviving child is eligible for two family pensions in respect of the deceased parents,” a statement issued by DoPPW said.

The statement further outlined that since the highest pay has been revised to ₹250,000 taking into account the recommendations by seventh Central Pay Commission (CPC) recommendations, the amount prescribed has also been revised. “Earlier instructions laid down that the total amount of two family pensions in such cases, shall not exceed to ₹45,000 per month and ₹27,000 per month, which were determined at the rate of 50 per cent and 30 per cent, respectively taking into account of the highest pay of ₹90,000 as per the sixth Central Pay Commission (CPC) recommendations,” the statement said.

“Since the highest pay has been revised to ₹250,000 per month after the implementation of the seventh CPC recommendations, therefore the amount prescribed in Rule 54(11) of CCS (Pension) Rules has also been revised to ₹125,000 per month being 50 per cent of ₹250,000 and ₹75,000 per month being 30 per cent of ₹250,000,” the statement further added.

The DoPPW said that the above clarification came after several ministries shared references. The existing rule states that if both parents are government employees and one of the parents dies either during service or post-retirement, the family pension in respect of the deceased becomes payable to the surviving spouse. In the event of the death of the spouse, the child will receive both the family pensions in respect of the deceased parents and is subject to fulfilment of other eligibility conditions.