NEW DELHI: The Sixth Pay Commission has recommended over 40% increase in pensions of central government employees and 60% hike in pensions of the armed forces. In addition, the commission has proposed a special hike for those attaining 80 years of age and above.
The panel wanted the gratuity ceiling of Rs3.5 lakh be raised to Rs10 lakh.
While ruling out any change in the current rates of pension of 50%of the last salary drawn, the panel recommended that the quantum of pension available to old beneficiaries be increased.
The commission proposed that people get an additional 20% of basic pension on attaining the age of 80, which will be raised with the increase in age.
Employees who have attained the age of 85 will get 30% extra pension with 40, 50 and 100% hike for people above the age of 90, 95 and 100.
The commission also said the criterion of 33 years of qualifying service for receiving the full pension should be done away with and an employee should be eligible for 50 per cent pension after completing the minimum pensionable service of 20 years.
For the defence forces personnel, the commission recommended a hike of 60-75 per cent in pensions of lower ranks like sepoy, havildar, subedar and naib subedar. A person retiring in the rank of sepoy will get a pension of Rs 5,335 as against Rs 3,319 per month at present.
It also recommended an ex gratia of Rs 10-20 lakh for defence personnel who die on duty. Proposing modification of the present commutation table being used for the purpose of commuting, the commission also suggested that in future, pension should be commuted according to the revised table, which may be revised taking into consideration the interest rates and mortality table.