The Department of Pension and Pensioners’ Welfare (DoPPW) under the Central Government recently issued a clarification about the “last working day” for pension calculation purposes.
Earlier, confusion existed over whether the pension should be calculated up to the date of retirement (the last calendar day) or the last working day when the employee was physically present for duty — especially in cases where the employee was on leave, suspension, or holidays before superannuation.
The Centre’s clarification now states that the last working day shall be treated as the day immediately before retirement, even if that day happens to be a holiday or non-working day. This helps standardize how pensions and gratuity amounts are calculated.
What Changed:
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Previously, some departments treated the last day of the month (retirement day) as the final working day, while others took the preceding working day.
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This caused calculation differences in pension, leave encashment, and gratuity.
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The new clarification removes ambiguity and ensures uniform treatment across all central government departments.
Why It Matters:
This clarification:
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Removes confusion among HR and Accounts departments across ministries.
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Helps retiring employees know exactly which day their service is counted until.
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Prevents errors in pension sanction and gratuity computation.
For thousands of central employees retiring every month, this rule brings much-needed clarity and relief.
1. Attention: Start with the confusion over “last working day” and how many employees faced delays or miscalculations because of differing interpretations.
2. Interest: Explain the new DoPPW clarification and what it changes. Include real-world scenarios (like if retirement day is a Sunday or national holiday).
3. Desire: Highlight how this update benefits employees — smoother processing, fewer disputes, transparent pension calculation.
4. Action: Advise readers (especially those nearing retirement) to verify their service records, leave encashment, and ensure HR uses the updated rule.
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