Railway Services (Pension) Rules 2026: Maximum pension ₹1.25 lakh, up to 100% extra after age 80

The Ministry of Railways recently notified the Railway Services (Pension) Rules, 2026. Retirees eligible under these rules will get 50% of their last salary as a pension. The minimum pension can be ₹9000, and the maximum is capped at ₹1.25 lakh/month under the new rules.

The new rules also provide for up to 100% of the basic pension as an additional allowance for retirees aged above 80 years.

It states that 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.

As per the notification, the additional allowance will be as follows:

"After completion of eighty years of age or above by a retired railway servant, in addition to a pension or a compassionate allowance admissible under this rule, additional pension or additional compassionate allowance shall be payable to the retired railway servant...", the notification says.

For example, the notification says, if a pensioner was born on August 20, 1942, he will be eligible for an additional pension at the rate of 20% of the basic pension with effect from August 1, 2022.

Similarly, a pensioner born on the August 1, 1942, he will be eligible for additional pension at the rate of 20% of the basic pension with effect from August 1, 2022.

50% pension to retirees

Retirees eligible under the Railway Services (Pension) Rules, 2026 will get 50% of their last drawn salary as pension. The minimum pension can be ₹9000 and maximum ₹1.25 lakh.

"A railway servant, who retires under rule 33, rule 34, rule 35, rule 36, rule 37, rule 38 or rule 39, after completing a qualifying service of not less than ten years, shall become eligible for grant of a pension calculated at fifty per cent. of emoluments or average emoluments, whichever is more beneficial to him, subject to a minimum of nine thousand rupees per month and maximum of one lakh twenty-five thousand rupees per month," the notification says.

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:

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.