How family pension is structured
Family pension under the CCS (Pension) Rules, 2021 (and equivalent rules for state services and defence) has two rates and a duration-based switch:
- Enhanced rate — 50% of last pay drawn for a limited duration:
- 10 years from date of death if the employee died in service.
- 7 years from date of death if the employee was a pensioner (already retired).
- In both cases, the period stops earlier on the date the deceased would have been 67.
- Normal rate — 30% of last pay drawn for the remaining lifetime of the eligible family member.
- Minimum: ₹9,000 per month.
- Maximum: 30% of ₹2,50,000 = ₹75,000 (normal); 50% × ₹2,50,000 = ₹1,25,000 (enhanced).
The enhanced rate is meant to soften the income shock in the first few years after the loss; the normal rate continues for the family member’s entire life (subject to eligibility).
Old-age additional pension
Family pensioners (and regular pensioners) receive an additional pension on top of the basic family pension once they cross 80. The slabs:
| Recipient age | Additional pension |
|---|---|
| 80–84 years | 20% of basic FP |
| 85–89 years | 30% of basic FP |
| 90–94 years | 40% of basic FP |
| 95–99 years | 50% of basic FP |
| 100 years and above | 100% of basic FP |
Dearness relief is computed on the total of basic family pension + old-age additional pension.
Eligibility — who can receive family pension?
The order of priority among family members:
- Spouse (widow / widower) — first claim. Pension continues for life or until remarriage. Re-marriage to the spouse’s same family (e.g., late husband’s brother) doesn’t disqualify.
- Unmarried daughter — lifetime if disabled, otherwise until marriage / starting to earn.
- Widowed / divorced daughter — for life (subject to no remarriage / no income from employment).
- Son — until age 25, or marriage, or starting to earn (whichever earliest). Lifetime if disabled.
- Dependent parents — only if no eligible spouse / children. Their family pension is the basic family pension only (no enhanced rate).
- Disabled siblings — in narrow circumstances, lifetime, only if no spouse / children / parents.
Family pension is paid to one eligible recipient at a time; it doesn’t split. When the current recipient becomes ineligible (death, remarriage, age cut-off, employment), it passes to the next in line.
Defence variants
| Type | Rate | When applicable | Tax |
|---|---|---|---|
| Ordinary Family Pension (OFP) | 30% / 50% (same as civilian) | Death not attributable to service | Taxable (with 57(iia) deduction) |
| Special Family Pension (SFP) | 30% of last pay, lifetime — no enhanced | Death attributable to military service | Tax-free under Section 10(19) |
| Liberalised Family Pension (LFP) | 100% of last pay drawn | Death in war / counter-insurgency / similar | Tax-free under Section 10(19) |
Liberalised Family Pension is paid for life to widow / disabled dependents. After the widow remarries (other than to a deceased’s family member) the rate may revert to OFP.
Tax treatment of family pension
- Family pension is Income from Other Sources (not Salary). It does not qualify for the salary standard deduction or HRA / LTA exemptions.
- Section 57(iia) deduction (old regime): lower of ₹15,000 or 1/3 of family pension received during the year.
- New regime FY 2024-25 onwards: a higher ₹25,000 standard deduction is allowed against family pension — this replaces the 57(iia) approach.
- Section 10(19) fully exempts family pension paid to widow / family of armed forces personnel killed in operational duty (SFP / LFP).
- Dearness relief on family pension is taxable on the same lines as the basic family pension.
FAQ
What is family pension?
Family pension is the monthly payment made to the family of a deceased Central / State Government employee, defence personnel, or pensioner. It’s governed by the CCS (Pension) Rules, 2021 for civilian Central employees, with parallel rules for defence and state services. Two rates exist: enhanced (50% of last pay) for a limited duration and normal (30% of last pay) thereafter.
How long is the enhanced rate paid?
Enhanced rate (50% of last pay) is paid for: 10 years from the date of death if the employee died in service, or 7 years from the date of death if the employee was a pensioner. In both cases, the enhanced period stops earlier on the date the deceased would have been 67. After enhanced ends, the normal rate (30%) continues for life of the eligible family member.
Who is eligible to receive family pension?
In order of priority: (1) spouse (widow/widower) for life or until remarriage, (2) unmarried / widowed / divorced daughters (lifetime if disabled, until marriage or starting to earn otherwise), (3) sons until age 25 or until marriage / starting to earn (whichever is earliest; lifetime if disabled), (4) dependent parents if no spouse / children, (5) disabled siblings in specific cases.
What is the old-age additional pension?
Pensioners (and family pensioners) over 80 years of age get an additional pension on top of basic. Slabs: 20% extra at age 80–84, 30% at 85–89, 40% at 90–94, 50% at 95–99, and 100% at age 100+. Dearness relief applies on the total (basic + additional).
Are there minimum and maximum limits?
Yes — minimum family pension is ₹9,000 per month (post 7th CPC). Maximum is 30% of the highest pay in government (currently 30% × ₹2,50,000 = ₹75,000) at normal rate, or 50% × ₹2,50,000 = ₹1,25,000 at enhanced rate. Old-age additional pension and DR sit on top of these caps.
What about defence personnel?
Defence has three variants: Ordinary Family Pension (OFP) at the same 30%/50% as civilian; Special Family Pension (SFP) at 30% of last pay (no enhanced, but lifetime) when death is attributable to military service; Liberalised Family Pension (LFP) at 100% of last pay for death in war / counter-insurgency / armed-conflict-attributable cases. SFP and LFP are tax-free.
How is family pension taxed?
Family pension is taxed under Income from Other Sources (not Salary). Section 57(iia) allows a deduction of ₹15,000 or 1/3 of pension, whichever is lower in the old regime. From FY 2024-25 onwards the new regime allows a higher ₹25,000 standard deduction on family pension. Family pension to widow/family of armed forces personnel killed in operational duty is fully exempt under Section 10(19).
What is Dearness Relief (DR) on family pension?
DR is an inflation-linked top-up paid to family pensioners at the same percentage as DA paid to serving Central Government employees (currently around 58% as of Jul 2025). It’s computed on the total of basic family pension + old-age additional pension.
Can both spouses claim two family pensions?
Yes — since the rules were revised in September 2019, if both husband and wife were Central Government employees, the surviving spouse can receive two family pensions, subject to a combined ceiling of ₹1,25,000 per month plus DR. Earlier this was capped at one pension.