Pension

A complete guide to central government pension: the Old Pension Scheme, NPS, and UPS, plus gratuity, commutation, family pension, and how it is sanctioned.

How a central government pensioner commutes up to 40 per cent of pension for a tax-free lump sum, restored after 15 years, with the formula and factor.

Dearness relief adjusts a central government pension for inflation at the dearness allowance rate (60 per cent from January 2026), paid on the full pension.

Family pension for a central government employee's family is 30 per cent of last pay, enhanced to 50 per cent. Who is eligible, and the enhanced rate.

Retirement gratuity for central government employees is one-fourth of pay per six months, capped at Rs 25 lakh and fully tax-exempt. Death and service gratuity.

The National Pension System is the contributory pension for central government employees who joined on or after 1 January 2004. Contributions, tax, and UPS.

The Old Pension Scheme is the non-contributory defined-benefit pension for central government employees who joined before 1 January 2004: the 50% formula.

One Rank One Pension gives defence pensioners of the same rank and service the same pension regardless of retirement date: the 2014 scheme and its revisions.

The Unified Pension Scheme, operative from 1 April 2025, gives central government employees an assured pension of 50 per cent of pay within NPS. Rules and tax.