7th Pay Commission Update: If someone in your family is a government employee, this news is going to prove very useful. The Modi government at the eCentre has made a significant change to a vital rule related to pensions, which is being widely discussed. Now, an employee of a public sector undertaking will not be eligible for retirement benefits in the event of removal or dismissal during service.
The government stated that the relevant administrative ministry will review the decision regarding such dismissal or removal. This is considered a significant government decision. The Ministry of Personnel has also implemented several important changes.
Personnel Ministry made significant changes.
The Ministry of Personnel has made many significant changes in the Central Civil Service 2021 in this regard. According to the recently notified Central Civil Services Rules 2025, any employee dismissed or removed from the service of a public sector undertaking for misconduct after joining will also forfeit retirement benefits. It is stated that in the event of dismissal, expulsion, or retrenchment of an employee, the decision of the undertaking will be reviewed administratively by the relevant ministry.
What has the rule been so far?
According to the previous rules, forfeiture of retirement benefits was not permitted in cases of dismissal or removal of an employee from a public sector undertaking. The Central Civil Services (Classification, Control and Appeal) Rules 2021 apply to government employees hired on or before December 31, 2023, except for persons engaged in Railway Employees Casual and Daily Wage Employment and officers of the Indian Administrative Service, Indian Police Service, and Indian Forest Service.
The decision will be taken on the notional increment.
For your information, we would like to inform you that a decision has been made regarding the notional increment. Under this, if the employee retires on June 30 or December 31, they will receive the benefit of a notional increment. The existing employee is allowed to choose the date of his salary increase as July 1 or January 1.