7th pay commission Recommendation on increasing Minimum Pension
There was resentment among central government employees regarding Minimum Pension.
In V CPC, the minimum pension in the government was ₹1,275
In 6th Pay Commission, Minimum Pension was fixed at Rs.3500.
Since Minimum Pay of the Government Servants in sixth pay commission was Rs.7000, 50% of this minimum pay was fixed as Minimum Pension. But everybody knows that this minimum pension is not sufficient enough to meet the expenses of the family of deceased govt servants
In representations/depositions before the Commission it was stated that the existing minimum pension fixed at ₹3,500 is low and it has been argued that minimum pension be fixed equal to minimum pay for sustenance.
The Commission also sought the views of the government in this regard.
The Department of Pension and Pensioners Welfare stated that as per the orders issued after V CPC, the minimum pension in the government was ₹1,275. The normal revised consolidated pension of a pre-2006 pensioner is 2.26 of the pre-revised basic pension. The revised minimum pension of ₹3,500 is much more than 2.26 time of the pre-revised pension of ₹1,275.
The seventh th Pay commission opined that its recommendations in relation to pay of personnel will lead to a significant increase in the minimum pay from the existing ₹7,000 per month to ₹18,000 per month.
The commission didn’t want to consider fixing Minimum Pension equalant to Minimum Pay , Since fixing the Minimum Pension to the Minimum Pay level will take the minimum Pension from Rs.3500 to Rs.18000 which is 5.14 times from the existing Minimum Pension
So, as it followed the status quo in many recommendations, the Pay Commission recommended that the existing Minimum Pension to be Multiplied by 2.57 is enough . This, based on the computation of pension, will raise minimum pension from the existing ₹3,500 to ₹9,000. The minimum pension based on the recommendations of this Commission will increase by 2.57 times over the existing level.
So The Minimum Pension recommended by 7th Pay commission is Rs.9000