7th Pay Commission: Govt Raises Upper Ceiling Of Family Pensions To Rs 1.25 lakh

The change in the limit of family pension makes the child eligible to draw two family pensions after death of his or her parents.

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Here’s good news for families of pensioners! The upper ceiling of the family pensions has been increased to ₹1.25 lakh from the existing ₹45,000 per month, union minister Jitendra Singh said. The government has decided to raise the limit to bring 'ease of living' for the family members of the deceased employees. "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," said the minister.

What’s the new limit?

The change in the limit of family pension makes the child eligible to draw two family pensions after the death of his or her parents. In this regard, the Department of Pension and Pensioners' Welfare (DoPPW) has issued a clarification on the amount admissible to the child.  

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 the Personnel Ministry said.

What’s the existing rule?

As per the existing rule if parents are government servants, and if one of them dies while in service or after retirement, the family pension in respect of the deceased shall become payable to the surviving spouse. Incase of the death of the spouse, the child shall be granted two family pensions in respect of the deceased parents subject to fulfillment of other eligibility conditions.

Earlier 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, it said.

What 7^th Pay Commission Says?

With the highest pay being revised to ₹2,50,000 per month after the implementation of the seventh CPC recommendations, the amount prescribed in Rule 54(11) of CCS (Pension) Rules has also been revised to ₹1,25,000 per month being 50 per cent of ₹2,50,000 and ₹75,000 per month being 30 per cent of ₹2,50,000.

The above clarification has been issued on the references received from various ministries or departments, it said.