What are the retirement benefits for central government employees?

The retirement benefits of central government employees in India are governed by the Central Civil Services (Pension) Rules, 1972. Some of the key retirement benefits of central government employees are:

1. Pension: The pension is the primary retirement benefit for central government employees. Based on the employee's years of service and latest drawn salary, it is determined. The pension amount is fixed at 50% of the average emoluments (last 10 months' average pay) or the last pay drawn, whichever is more beneficial to the employee. The pension is payable for the lifetime of the retired employee.

2. Gratuity: Gratuity is a lump sum payment made to the central government employee on retirement. The employee's last drawn salary and the number of years of service are used to determine the gratuity amount. The gratuity amount is equal to 16.5 times the last drawn salary for every completed year of service, subject to a maximum of Rs. 20 lakhs.

3. Commuted Pension: Central government employees can opt to commute a portion of their pension to receive a lump sum payment at the time of retirement. The maximum amount that can be commuted is 40% of the pension. The commuted portion of the pension is deducted from the monthly pension payable to the employee.

4. Leave Encashment: Central government employees are entitled to encashment of their accumulated leave on retirement. The amount paid is based on the employee's last drawn salary and the number of days of leave accumulated. The maximum number of days of leave that can be encashed is 300.

5. Medical Benefits: Central government employees are eligible for medical benefits after retirement under the Central Government Health Scheme (CGHS) or other similar schemes. The retired employee and their spouse are entitled to medical treatment in government hospitals and dispensaries. The retired employee can also opt for medical insurance coverage under the CGHS scheme.

6. Insurance: Central government employees may be eligible for group insurance scheme coverage, which provides a lump sum payment to their nominees in case of their death while in service or after retirement. The amount of insurance coverage depends on the employee's salary and years of service.

It is important to note that the retirement benefits for central government employees may vary depending on their grade, position, and years of service.