In a major relief for the retiring government employees, The Central Government has issued a clarification under Government Pension Rule of 2025, ruling that individuals who would retire just before any official salary notification will still be permitted to receive those increments for the purpose of pension calculations. This has come as a big relief for hundreds of thousands of employees retiring in the coming months, many of whom were waiting for the change from the 8th Pay Commission or DA revisions.
New Rule
It is now accepted by pension rules, revised for 2025, that Government employees who have been about to retire, enough just before the effective date of salary increments- DA hike or Pay Commission upgrade-will still be entitled to benefit. The rule recognizes long service of an employee who shall be deprived of financial benefits owing merely to differences in timing.
Meaning, if any employee retires on June 30, while salary hike for new structure comes into existence on July 1, retirement benefits from that June 30 will be payable under the new salary structure.
Reason For The Change In Law
Previously, several government servants who retired just before an official pay revision date found themselves excluded from salary-related increments, resulting in lower pensions and benefits despite decades of service. The situation had become a menace of discontent and legal petitions filed by aggrieved ex-servicemen.
The pension rule amendment 2025 fills in this gap and would, therefore, constitute a just and equitable way for the division of benefits. This, therefore, also goes with the government’s direction of giving dignity, financial security, and respect to senior citizens and retired personnel.
Who will benefit?
Under this law, the following are benefited:
- Central government employees retiring between June and December 2025.
- Personnel whose retirement date is just before the implementation of the 8th Pay Commission.
- And such retirees who come in line for further DA hikes and special allowance.
Financial Impact
This rule would see pension payouts rising for thousands of retirees because they would now be governed by the newer salary structures. This would mean an extra burden on the exchequer but promotes the welfare of employees and wipes out discrimination on the grounds of retirement date.
Also Read:Central Govt Salary Hike: Basic Pay May Rise From RS 18,000 To RS 51,000