The government has implemented new rules for pensioners that will help in simplifying their financial security and life. These rules are made especially for older people, widowed women and disabled persons. In this article, we will describe these rules in detail so that the elderly can get their pension on time.
Pension Rules 2025 Overview
| Description | Information |
| Applied date | 1 April 2025 |
| Beneficiary | Older, widowed women, disabled person |
| Monthly pension amount | ₹ 3,000 to ₹ 10,000 (as per category) |
| Eligibility age | Older: 60 years or more; Widow: 18 years or more; Divyang: 18 years or more |
| Annual income limit | Less than ₹ 1,00,000 |
| Application process | Both online and offline medium |
| Financial source | Joint contribution of central and state government |
Key updates in pension rules
Age-based additional pension
The government has provided additional pension on age basis. This rule is applicable to the pensioners of the Central Government.
- 80 to 85 years: 20% additional of basic pension
- 85 to 90 years: 30% additional of basic pension
- 90 to 95 years: 40% additional of basic pension
- 95 to 100 years: 50% additional of basic pension
- 100 years and above: 100% additional of basic pension
This additional pension will be payable from the first day of the month in which the pensioner completes the prescribed age.
Life Certificate Submission
It is mandatory to submit life certificate to get pension. This certificate has to be submitted every year by 30 November.
Pension withdrawal process simplification
Under the new rules, pensioners can extract their pension from any bank branch. Now they will not have to depend on any particular bank or branch.
Main point:
- Centralized Pension Payment System (CPPS): This system has been implemented across the country.
- Pension Payment Order (PPO): Now there will be no need to transfer PPO.
- Aadhaar-Based Payment System: This system will be further simplified in future.
Direct Benefit Transfer (DBT)
Under the DBT system, all the beneficiaries will be sent directly to their bank account.
Benefits:
- The possibility of corruption will be less.
- Transparency will be ensured.
- The payment process will be speeded up.
Unified Pension Scheme (UPS)
Main characteristics:
- The contribution from the government has increased to 18.5%.
- Employees will get a minimum of ₹ 10,000 per month guaranteed pension.
- Employees will contribute 10% of their basic salary and dearness allowance.
Eligibility:
The scheme is only available to government employees who are already included in NPS.
Tax Benefits for Senior Citizens
Main tax benefits for senior citizens in budget 2025:
- The annual income limit has been increased to ₹ 12,00,000.
- Withdrawal from NSS (National Savings Scheme) is now tax free.
- The TDS limit on the interest earned on FD and savings accounts has been increased to ₹ 1,00,000.
Compensation for delayed Pension Payments
If for some reason pension is not received on time, then the bank will have to pay 8% annual interest on the amount of that delay.
Main point:
- This interest will be credited automatically.
- There will be no need to file a complaint.
Disclaimer:
This article is based on the new rules and schemes announced by the government. The purpose of these schemes is to provide financial security to the elderly. However, the reality of the schemes and their implementation depends on the policies of the state or central government. Readers are advised to get information from official documents or related departments.
