Compassionate Allowance: CCS Pension Rule 44 Explained

The Department of Pension & Pensioners’ Welfare has circulated an Office Memorandum reiterating how Compassionate Allowance is to be worked out for Central Government employees who are dismissed or removed from service and are sanctioned compassionate allowance under Rule 41 of the CCS (Pension) Rules, 2021.
The OM draws specific attention to Rule 44(5)(a) & (b), which lays down the basis for calculation.

The two scenarios under Rule 44(5)

1) Qualifying service of 10 years or more

If a government servant is dismissed/removed after completing at least 10 years of qualifying service and is sanctioned compassionate allowance under Rule 41:

The amount shall be a portion/percentage of the pension that would have been admissible on superannuation, as sanctioned by the competent authority under Rule 41.
In simple terms: the benchmark for calculation is the pension that would have been payable on normal retirement; the authority then sanctions an appropriate percentage of that amount as compassionate allowance.

2) Qualifying service less than 10 years

If a government servant is dismissed/removed before completing 10 years of qualifying service and is sanctioned compassionate allowance under Rule 41:

The amount shall be a portion/percentage of the service gratuity that would have been admissible on superannuation, as sanctioned by the competent authority under Rule 41.
Here, the benchmark shifts from pension to service gratuity, since qualifying service for pension is not met.

Why this matters

Uniform application: The OM ensures Ministries/Departments apply one clear rulebook when fixing compassionate allowance in dismissal/removal cases.
Right benchmark: It clarifies the reference amount used for calculation—pension (for ≥10 years’ qualifying service) or service gratuity (for <10 years).
Competent authority’s role: The portion/percentage to be sanctioned remains at the discretion of the competent authority under Rule 41.

FAQs (for quick clarity)

Is compassionate allowance automatic in all dismissal/removal cases?
No. It is discretionary and may be sanctioned under Rule 41 by the competent authority based on the merits of the case.

Does the OM change the quantum or limits of compassionate allowance?
No. It reiterates how the basis for calculation should be chosen—pension vs service gratuity—depending on whether 10 years of qualifying service has been completed.

What should departments do now?
Circulate the OM internally and apply Rule 44(5) read with Rule 41 consistently in all relevant cases.

View OM: