Pension after compulsory retirement? Centre issues key clarification
New Delhi, Nov 12, 2025
Announcement aims to remove ambiguity around benefits available, says Department of Pension and Pensioners' Welfare
The central government has issued a clarification about pension and service gratuity entitlements for its employees marked for compulsory retirement. The move aims to remove ambiguity around benefits available under the Central Civil Services (Pension) Rules, 2021, according to the Department of Pension and Pensioners’ Welfare (DoPPW).
Pension eligibility after compulsory retirement
A government servant who is compulsorily retired after completing at least 10 years of qualifying service is entitled to compulsory retirement pension, according to DoPPW. It cited rule 44 which says that such employees will receive a portion or percentage of the superannuation pension, the full pension normally payable on voluntary or age-based retirement. The final pension amount will be determined by the “competent authority”.
In simple terms, the pension for an employee retired compulsorily after 10 years of service will not be equal to full retirement pension, but a reduced portion as decided by the authority concerned.
Gratuity for those with less than 10 years of service
Employees who are compulsorily retired before completing 10 years of qualifying service are not eligible for pension. Instead, they will be entitled to a service gratuity, which is a one-time payment.
According to the sub-rule (4)(b) of Rule 44, the gratuity amount will be calculated as a proportion of the full superannuation gratuity that would have been payable on normal retirement. The competent authority will determine the exact percentage in each case.
What is a compulsory retirement pension?
A compulsory retirement pension is granted when a government servant is retired as a disciplinary penalty. Under Rule 40(1) of the CCS (Pension) Rules, the authority imposing the penalty decides whether the employee receives pension, gratuity, or both.
The amount can range between two-thirds and full superannuation pension, depending on the nature of the case. However, if the pension sanctioned is less than the full amount, the Union Public Service Commission must be consulted before the order is finalised.
Minimum and maximum pension limits
According to Rule 44(1), the pension payable to an eligible government servant cannot be less than Rs 9,000 per month and cannot exceed Rs 1,25,000 per month.
For those retiring with at least 10 years of qualifying service, the pension is calculated at 50 per cent of the last drawn emoluments or average emoluments, whichever is more beneficial.
The clarification ensures consistency and transparency in the application of pension rules, particularly for employees facing compulsory retirement. It also helps departments handle such cases uniformly and provides clarity to affected employees on what benefits they can expect.
[The Business Standard]
