Railway Employees to get Extra Pension! Maximum Pension Rs 1.25 Lakh, Check new pension rules
The Ministry of Railways has recently released the new Railway Services (Pension) Rules, 2026. Retirees eligible under these rules will get 50% of their last salary as a pension. The minimum pension will be ₹9000, and the maximum is capped at ₹1.25 lakh/month under the new rules.
The new rules also offer up to 100% of the basic pension as an additional allowance for retirees aged above 80 years. After reaching 80 years of age, a retired railway servant will be eligible for an additional compassionate allowance, which will be given as a percentage of the basic pension and vary with rising age.
Also Read: Breaking! Salary of PSU Insurance Employees Hiked by Govt
| Age bracket | Additional pension |
|---|---|
| From 80 years to less than 85 years | 20% of basic pension/compassionate allowance |
| From 85 years to less than 90 years | 30% of basic pension/compassionate allowance |
| From 90 years to less than 95 years | 40% of basic pension/compassionate allowance |
| From 95 years to less than 100 years | 50% of basic pension/compassionate allowance |
| 100 years or more | 100% of basic pension/compassionate allowance |
Who is covered under Railway Services (Pension) Rules, 2026?
These rules apply to the following railway servants:
- Any Group ‘D’ railway servant whose service was pensionable before the introduction of Pension System for Railway Servants on November 16, 1957.
- Any non-pensionable railway servants who were in service on November 16, 1957 and who elected to be governed by these rules.
- Any non-pensionable railway servant, who were in service on January 1, 1986 and did not opt to be governed by the State Railway Provident Fund (Contributory) Rules; and
- Any person entering a railway service on or after November 16, 1957, except a person who is appointed on contract or re-employed after superannuation or whose terms of appointment specifically provide to the contrary.
These rules also apply to a railway servant who was put on induction training on or before December 31, 2003, followed by appointment on regular basis after December 31, 2003:
Also Read: Security Boost for PNB Employees! PNB Rolls Out Term Life Insurance Plan for All Employees
Who is not covered?
These rules will not apply to the following:
- Railway servants appointed on or after the 1st day of January, 2004;
- Persons in casual and daily rated employment ;
- Persons paid from contingencies ;
- Persons entitled to the benefit of a State Railway Provident Fund (Contributory);
- Persons employed on contract except when the contract provides otherwise ;
- Persons whose terms and conditions of service are regulated by or under the provisions of the Constitution or any other law for the time being in force; and
- Persons employed to work on payment of a fee or honorarium.
Click here to download Official Notification
Also Read: Important FAQs on Bank Strike
