7th Pay Commission: Centre changes rules of pension, here's how much money you will get now

There is good news for lakhs of government employees as the Narendra Modi-led Centre has made changes in the rules related to the pension. Under the new rules, after the death of the employee, his family and his dependents will get 50 percent of the pension money.

According to the new rule, the rule of the condition of 7 years of service for pension for the dependents of the government employee has been abolished. Now if an employee dies before the completion of 7 years of service, then 50 percent of the pension money will be given to the family of the employee. Earlier, in many cases, the family members could not get the benefit of pension due to this condition.

Notably, after a long wait, the Central Government has increased the Dearness Allowance or DA. Dearness Allowance, DA and Dearness Relief (DR) for central employees and pensioners has been increased from the existing rate of 17 per cent to 28 per cent. These new rates will be applicable from July 1, 2021.

The Finance Ministry had in April 2020 decided to stop the increase in dearness allowance for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the coronavirus crisis. They have not got the benefit of DA till 30 June 2021. Now about 48 lakh central employees and 65 lakh pensioners will benefit from this move of the government. This will increase the expenditure of the government by about Rs 34,401 crore.