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Implementation of Government’s decision on the recommendation ofthe Sixth CPC – Revision of provisions regulating gratuity

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No.7/7/2008-P&PW (F)

Government of India

Ministry of Personnel Public Grievances and Pensions

Department of Pension and Pensioners Welfare


Lok Nayak Bhawan,

Khan Market, NewDelhi-110 003

dated 13th February, 2009


Subject : Implementation of Government’s decision on the recommendation ofthe Sixth CPC – Revision of provisions regulating gratuity .

The undersigned is directed to saythat in terms of para 7.1 of this Department’s O.M. No.38/37/2008-P&PW(A)dated the 2nd September, 2008 issued in implementation of thedecision taken on the recommendation of the Sixth Central Pay Commission, thebenefit of adding years of qualifying service for the purpose of computation ofpension shall stand withdrawn with effect from the date of issue of the O.M.

2. Sixth Central Pay Commission in Para5.1.33 of its Report made the following recommendation:

“Linkage of fullpension with 33 years of qualifying service should be dispensed with. Once an employee renders the minimumpensionable service of 20 years, pension should be paid at 50% of the averageemoluments received during the past 10 months or the pay last drawn, whicheveris more beneficial to the retiring employee. Simultaneously, the extant benefit of adding years of qualifying servicefor purposes of computing pension/related benefits should be withdrawn as itwould no longer be relevant.”

This recommendation was acceptedby Government of India vide Resolution No.38/37/2008-P&PW (A) dated 29thAugust, 2008.

3. It is clear from the above recommendations/decisions, thatthe benefit of adding years of qualifying service is withdrawn for the purposeof computing pension as well as other related benefits such as gratuity.

4. This issues with the concurrence of the Ministry of Finance,Department of Expenditure U.O. No.4.2/40/2009-ICdated 12.2.2009

5. Ministry of Agriculture etc. are requested to take intoconsideration the above position while computing pension and gratuity ofgovernment servants who have retired since 2.9.2008.


(M.P. Singh)

Director (PP)


Memorandum to Honorable Prime Minister

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A Massive Rally of more than a lakh of Indian Working Class including Government employees and Public Sector employees was held in Delhi on 18.02.2009 in front of the Parliament. Leaders of the Central Trade Unions and all India Federations including Confederation addressed the Rally before a delegation went to submit a Memorandum to Honorable Prime Minister.

The Mass Rally was addressed by leaders of Central Trade Unions like
AITUC – All India Trade Union Congress
CITU – Centre of Indian Trade Unions
UTUC – United Trade Union Congress
TUCC – Trade Union Coordination Centre
AIUTUC -All India United Trade Union Centre

All India Federations and Unions like
AIBEA-All India Bank Employees Association
AIDEF – All India Defence Employees Federation
AIIEA - All India Insurance Employees’ Association
AISGEF - All India State Government Employees Federation and Confederation.

The Rally warned the Government of intense struggles by the Working Class to protect against the attempts to transfer the burden of financial crisis on the workers.

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