New Pension Rules 2025: Employees Taking Compulsory Retirement to Receive Pension on These Terms

New Pension Guidelines: The government has now made it clear how the pension and gratuity will be calculated for employees who are forced into retirement. Those facing compulsory retirement often find themselves confused about the gratuity amount and how it’s calculated based on their years of service. Now, the government has issued a new office memorandum to clarify this whole process.

This new rule will be put into effect under Rule 44 of the Central Civil Services (Pension) Rules 2021. With this change, employees will have clear information on the conditions and the amount of pension and gratuity they can expect if they are given compulsory retirement during their service.

For those with less than 10 years of service

Employees who are retired compulsorily before reaching 10 years will receive a compulsory retirement gratuity, which is a percentage of the superannuation gratuity set by the competent authority. A new update has come out for central government employees. If a government employee is compelled to retire, how much pension and gratuity will they get? If a central government employee is forced to retire after completing at least 10 years of service, they will qualify for a compulsory retirement pension. This pension amount will be a fixed percentage of the regular superannuation pension, which is the standard retirement pension. The specific amount will be determined by the relevant department or official.

Information Instruction

The government has instructed all ministries and departments to share information about this rule with all their employees to prevent any confusion or disputes in the future.

Why is this information important?

Employees who are close to retirement should be aware of how their benefits will be calculated based on their service duration. They should also keep in mind that the final pension or gratuity amount will only be finalized after receiving approval from the competent authority. This government initiative will help ease the concerns of employees who are planning for retirement.