In case of dismissal or removal of any employee of a Public Sector Undertaking (PSU), he will not get retirement benefits. A notification has been issued by the government in this regard.
7th pay commission latest: If you are a government employee then this news is for you. Actually, the central government has changed an important rule related to pension. Now in the event of dismissal or removal of any employee of a public sector undertaking (PSU), he will not get retirement benefits. Giving this information, the central government said that the decision of such dismissal or removal will be reviewed by the concerned administrative ministry.
The Ministry of Personnel has notified
The Ministry of Personnel has made major changes in the Central Civil Services (Pension) Rules, 2021 in this regard. According to the recently notified Central Civil Services (Pension) Amendment Rules, 2025- Any employee dismissed or removed from the service of such undertaking for any misconduct after joining a public sector undertaking will forfeit retirement benefits. These rules were notified on 22 May. It said that in the event of dismissal, expulsion or retrenchment of the employee, the decision of the undertaking will be reviewed administratively by the concerned ministry.
What was the rule till now
Under the previous rules, forfeiture of retirement benefits was not allowed in the event of dismissal or removal from service of an employee of a public sector undertaking. The Central Civil Services (Pension) Rules, 2021 apply to government employees appointed on or before December 31, 2003, except railway employees, persons engaged in casual and daily wage employment, and officers of the Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS).
Decision on notional increment
Recently, the government has also taken a decision on notional increment. Under this, now the central employee who retires on 30 June or 31 December will get the benefit of notional increment. The current rules allow employees to choose their salary hike date as 1 July or 1 January.
