7th Pay Commission: Cabinet approves changes in pension benefits


New Delhi: The Union Cabinet meet chaired by the Prime Minister Narendra Modi on Wednesday approved the key proposals relating to modifications in the Seventh Central Pay Commission (CPC) recommendations on pay and pension benefits in the course of their implementation.

It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners, taking the annual pension bill alone of the Central government to touch Rs.1,76,071 crore.

The Union Cabinet also approved four modifications in the defence pension from the Seventh Pay Commission’s original proposal that was opposed by the armed forces as they led to a reduction of their pay and status.

Earlier, the pensions of pre-2016 pensioners were revised as per a formulation, which involved multiplying existing pension by a fitment factor of 2.57.

The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases, according to Finance Minister Arun Jaitley.

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