Govt amends Nat’l Pay Scale 2026 order

The government has amended the National Pay Scale 2026 order, introducing new provisions on post-retirement leave, net pension and gratuity calculations, and the revision of previously settled pension and gratuity claims.

The amendments were announced in a Finance Ministry notification issued on Wednesday.
Under the revised order, a new sub-clause has been added after sub-clause of clause of Article 1. It states that pension and gratuity claims settled based on the basic salary under the National Pay Scale 2015, following post-retirement leave between July 1, 2026 and the date of issuance of the amended order, must be recalculated where applicable, subject to the provisions of sub-clause. Any additional amount found payable after recalculation must be paid to the concerned employees.

Under the new provisions, employees whose post-retirement leave began on July 1, 2026 will receive their salaries and allowances during the leave period under the National Pay Scale 2015, including the special benefit. Their net pension and gratuity will be determined and paid after the completion of leave in accordance with the relevant provisions of the order.

However, employees whose post-retirement leave began on or after July 2, 2026, or will begin later, will receive salaries and allowances during the leave period under the National Pay Scale 2026. Their net pension and gratuity will be calculated under the applicable provisions after completion of the leave.

The government has also clarified that employees whose post-retirement leave began before July 1, 2026 and continued beyond that date will receive salaries and allowances under the 2015 pay scale, including the special benefit.

Meanwhile, the Finance Division has issued a separate clarification on the payment of recreation allowance during the phased implementation of the new pay scale.

According to the notification, employees will receive a recreation allowance equivalent to the basic salary drawn in the month they take recreation leave. The instruction will remain effective from July 1, 2026 to June 30, 2027.