7th Pay Commission: Family pensions ceiling enhanced to Rs 1.25 lakh per month
By TIOL News Service
NEW DELHI, FEB 12, 2021: THE 7th Pay Commission has raised the upper ceiling of family pensions from Rs. 45,000 to Rs. 1,25,000 per month, said the government on Friday.
Minister of State for Pensions Mr Jitendra Singh said that the hike will bring ease of living for the family members of the deceased employees and would provide adequate financial security to them.
The Department of Pension and Pensioners' Welfare (DoPPW) has also issued clarification that in case a child is eligible to draw two family pensions after the death of their parents, it will be restricted to Rs. 1,25,000 per month, which is more than two and half times higher than the earlier limit.
Earlier, an amount not exceeding Rs. 45,000 per month and Rs. 27,000 per month, determined at the rate of 50 per cent and 30 per cent respectively, were allowed. With the highest pay of Rs. 90,000 as per the 6th Pay Commission recommendations.
Since the highest pay has been revised to Rs. 2,50,000 per month, the amount prescribed has also been revised to its 50 per cent at Rs. 1,25,000 per month and Rs. 75,000 per months at 30 per cent.
The Central government rules state that in the case of a retired or deceased parent who was a civil servant, the surviving spouse and children are applicable to receive a pension.