7th Pay Commission: Family Pensions Ceiling Enhanced

The Union Minister of State for Prime Minister’s Office and Personnel, Public Grievances & Pensions, Dr. Jitendra Singh, stated on February 12, 2021 that the upper ceiling for family pension has been increased from Rs 45,000 to Rs 1,25,000 per month.

Highlights

  • This decision was taken in order to bring Ease of Living for the family members of the deceased employees.
  • It would help in providing adequate financial security to the family members.
  • The Department of Pension & Pensioners’ Welfare (DoPPW) has also clarified the amount admissible when child is eligible to draw two family pensions after death of parents.
  • The notification says that the amount of both the family pensions will be restricted to Rs 1,25,000 per month. This amounts to two and half times more than the earlier limit.
  • Further the sub-rule (11) of rule 54 under the Central Civil Services (Pension) Rules 1972 states that if both wife and husband are Government servants and are governed by the provisions of that rule, then, on their death the surviving child will be eligible for two family pensions.

Pay Commission

This commission is set up by Government of India. It is set up in order to provide recommendations with respect to the changes in salary structure of the employees. The 1st pay commission was set in the year 1947. Since then, seven pay commissions have been set up on a regular basis to review and recommend on the work and pay structure. It is headquartered in Delhi. The pay commission is given a time limit of 18 months after its constitution to make any recommendation.

7th Central Pay Commission

The 7th pay commission was set up in September 2013. The pay commission submitted its recommendations with its implementation effect from 1 January 2016. It was headed by Justice A.K Mathur.

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