Retirement Age in India for Central Government Employees

India is currently facing the challenge of a rising elderly population due to high life expectancy and advanced healthcare facilities. The largest retirement fund EPFO has recently supported the idea of raising the scale for retirement age as per western countries to deal with this scenario of a growing ageing population. Supposedly, a new retirement age for central government employees can be a solution. 

Read on to know the general retirement age of Central Govt. employees and various pension benefits.

Here is a brief explanation of the several benefits a central government employee receives upon his retirement: 

• Pension: A Central Government employee is eligible for pension only if they complete a minimum of 10 years of service. The minimum monthly pension is ₹9000 per month. The maximum can be 50% of the highest pay in respective Government services.
• Commutation of Pension: A Central Government employee has the option to move 40% of his pension into a lump sum amount. Medical examination is not needed if the amount is commuted within one year of retirement.
• Death Gratuity: Nominee or dependant of a government employee dying in harness receives this lump sum amount. The maximum allowed amount of death gratuity is ₹20 lakh. There is no minimum service period to be eligible for this benefit.

• Retirement Gratuity: To receive this lump sum benefit, a retiree has to be a government servant for a minimum of 5 years. This amount is equal to the amount of 1/4th of a month’s Basic Pay with Dearness Allowance last drawn for completing 6 months of qualifying services. This amount can be a maximum of ₹20 lakhs.
• Service Gratuity: A government employee whose employment period is less than 10 years is entitled to receive a service gratuity. This amount is equal to the Basic Pay & Dearness Allowance last drawn for completing 6 months of qualifying services.
• Issue of No Demand Certificate: If there is any due left by a retiring employee on account of Licence Fee regarding accommodation, advance, overpayment of pay and allowances, the Head of Office needs to inform the Accounts Officer two months before retirement so that these could be adjusted with the gratuity amount. If, due to any reason, dues cannot be assessed by retirement, 10% of gratuity is withheld on the basis of a commutation from the Directorate of Estates.
• General Provident Fund and Incentives: According to General Provident Fund Rules, all temporary and permanent government employees, as well as all re-employed pensioners, are eligible to subscribe to this fund. However, govt. employees who joined services after January 01, 2004, do not qualify for this fund.
• Deposit Linked Insurance Scheme: As per the rules of GPF, upon the death of a subscriber, the individual is entitled to receive the amount accumulated in the account along with an additional amount. The additional amount should be equal to the average balance in the account during the 3 years immediately preceding the death of the subscriber and should not exceed the maximum limit of ₹ 60,000.
• Contributory Provident Fund: The benefits of a contributory provident fund are available to every non-pensionable service member of the Government functional under any services or department under the control of the President. One condition applicable to all is that an individual should not subscribe to this fund when on suspension period.
• Leave Encashment: Encashment of earned or half-pay leave available at the time of retirement is permissible with a maximum limit of up to 300 days.
• Central Government Employees Group Insurance Scheme: A portion of monthly contribution during the period of service is deposited in a savings fund on which interest gets accumulated. The family member can avail the benefits of this scheme in case of the untimely demise of the policyholder.

The retirement age for Central Government employees mostly depends on their department and their designation. But in most cases, the retirement age is capped at 60. It is ideal to stay updated with the latest news on retirement age as this will ensure efficient retirement planning.