7th Pay Commission Recommendations pension and Related Benefits Quantum of Minimum Pension should Equal the Minimum wage
10.1.26 In representations/depositions before the Commission it has been stated that the existing minimum pension fixed at ₹3,500 is low and it has been argued that minimum pension be fixed equal to minimum pay for sustenance.
Analysis and Recommendations
10.1.27 The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated that as per the orders issued after V CPC, the minimum pension in the government was ₹1,275. The normal revised consolidated pension of a pre-2006 pensioner is 2.26 of the pre-revised basic pension. The revised minimum pension of ₹3,500 is much more than 2.26 time of the pre-revised pension of ₹1,275. Further the recommendations of this Commission in relation to pay of personnel will lead to a significant increase in the minimum pay from the existing ₹7,000 per month to ₹18,000 per month. This, based on the computation of pension, will raise minimum pension from the existing ₹3,500 to ₹9,000. The minimum pension based on the recommendations of this Commission will increase by 2.57 times over the existing level.
Source:http://7cpc.india.gov.in/pdf/sevencpcreport.pdf