Pension Update 2025: Big news for central government employees. The central government has clarified the rules regarding the last working day of retirement for government employees. The question often arose as to whether the day of an employee’s retirement or death would be included in the service period. Now, the government has cleared this confusion and clarified that the day an employee retires, resigns, or dies will be considered their last and full working day of service. This has been implemented under the Central Civil Services (Pension) Rules 2021. Their pension or family pension will be calculated on this basis.
What has been said?
The Department of Employees’ Pension and Pensioners’ Welfare (DoPPW) has issued an Office Memorandum (OM) clarifying that in case of retirement, resignation, removal from service or death of a government employee, that day will be considered his last working day.
What happens in case of leave or suspension?
The Office Memorandum also states that if an employee was on leave or suspended before retirement or death, that day will be considered part of the leave or suspension period. This means that the day will not be considered a separate working day. For example, if a government employee retires or dies while on leave, that day will be counted as part of the leave period, not as an extra working day.
Why was it necessary to state the rules clearly?
An employee’s pension is calculated based on the total number of days served. There was often confusion about whether the day of retirement or death would count as service. Now, government regulations have clarified that the last day will be considered part of service, but if that day falls during a period of leave or suspension, it will not be counted as a separate working day.
