The decision was announced through a Government Resolution (GR) issued by the General Administration Department on August 14, 2026.

Under the new provision, employees whose children are studying from Class 1 to Class 12 can get additional time to remain in government accommodation after retirement, subject to prescribed conditions and payment of five times the existing licence fee.

The move is aimed at ensuring that a parent’s retirement does not immediately force a school-going child to relocate or change schools during the academic year.

Government accommodation can be retained after retirement

Government employees are generally required to vacate official accommodation after retirement within the prescribed period.

The state government has now created a specific concession for cases where the retiring employee has a child studying in school and the child’s academic year is still in progress.

The concession applies to children studying in Classes 1 to 12.

However, the employee must provide the documents required to establish the child’s educational status and comply with the conditions specified in the GR.

The most important financial condition is that the employee will have to pay five times the prevailing licence fee for the period for which the accommodation is retained under this special provision.

Retirement between January and June: Accommodation till June-end

The GR divides retiring employees into two categories based on when they retire.

If an employee retires between January and June, and their child is pursuing school education from Class 1 to Class 12, the employee can retain the government accommodation until the end of June of the same year.

For instance, an employee retiring in March would be permitted to stay in the government residence until the end of June, subject to the prescribed conditions and payment of the enhanced licence fee.

The government has also indicated that employees retiring during these months need to take their child’s academic calendar into account and make arrangements for shifting and admission elsewhere after the permitted period.

Retirement between July and December: Up to June of the following year

A longer extension has been provided for employees retiring during the second half of the calendar year.

If an employee retires between July and December, and their child is studying in Classes 1 to 12, the employee can retain the government accommodation until June 30 of the following calendar year.

The GR provides a specific example.

An employee retiring between July and December 2026 can retain the government accommodation until June 30, 2027.

This provision could be particularly significant for families because employees retiring during the middle or later part of the academic year will not have to immediately move out of their official residence and potentially disrupt their child’s schooling.

Five times the licence fee will apply

The extension comes with a cost.

The government has specified that the accommodation will be available during the permitted extended period at five times the existing licence fee.

This means the concession is not an extension at the employee’s normal government accommodation charges.

The applicable licence fee will effectively be multiplied by five for the period covered by the special permission.

The GR also makes the extension subject to submission of the necessary documents relating to the child’s education.

The extension is temporary, not permanent

The government has made it clear that the relaxation is only intended to cover the relevant academic period.

Once the permitted period comes to an end, the retired employee must vacate the government accommodation immediately.

For employees retiring between January and June, the permitted period generally ends in June of that year.

For employees retiring between July and December, the permitted period can extend until June 30 of the following year.

The government has warned that failure to vacate the premises after the permitted period will invite action under the provisions of an earlier Finance Department Government Resolution dated June 3, 2026.

Why the government introduced the relaxation

The policy addresses a practical problem faced by government employees at retirement.

A government employee may retire while their child is in the middle of an academic year. If the family is required to immediately vacate the official residence, it could mean finding a new home, shifting to another locality and potentially changing the child’s school.

The new policy provides a limited window for families to complete the academic year before moving out.

In effect, the government has attempted to balance two competing considerations:

the government’s requirement to recover official accommodation after an employee’s retirement and the child’s need for continuity in school education.

Applies to government residences across Maharashtra

The relaxation is not restricted to Mumbai.

According to the GR, it applies to government residences under the General Administration Department in Greater Mumbai as well as other government residences across the state of Maharashtra.

This means eligible retiring employees occupying covered government accommodation in different parts of the state can potentially benefit from the provision.

The actual applicability, however, will depend on whether the particular accommodation falls within the scope of the GR and whether the employee meets the prescribed conditions.

What about compulsory retirement and dismissal?

The GR refers to the provisions of a Finance Department Government Resolution dated June 3, 2026, under which the rules concerning vacation of government accommodation also apply to government employees who have been compulsorily retired or dismissed.

However, the August 14 GR specifically frames the new school-education-related concession around retiring employees whose children are pursuing Classes 1 to 12.

Therefore, the educational extension should not automatically be interpreted as applying to every category of employee mentioned in the earlier rules.

Background to the decision

The latest GR follows earlier government decisions concerning retention of government accommodation after retirement.

The General Administration Department has referred to:

• A Finance Department GR dated February 16, 2013;
• A General Administration Department GR dated January 7, 2021; and
• A Finance Department GR dated June 3, 2026.

The June 3, 2026 decision had laid down instructions concerning action to be taken when retired government employees fail to vacate government accommodation within the prescribed period.

The August 14 decision introduces the specific educational consideration into this framework.

What does this mean for retiring government employees?

For eligible employees, the decision provides greater certainty around one of the biggest practical issues associated with retirement — finding alternative accommodation while ensuring that children can complete their academic year without disruption.

The benefit is particularly relevant to employees retiring between July and December, because they can potentially remain in their official residence until June 30 of the following year.

However, the employee must factor in the significantly higher accommodation cost during the extension because of the five-times licence fee.

The employee also needs to ensure that the required educational documents are submitted and that the residence is vacated immediately once the permitted period expires.

A limited relief, not a blanket extension

The government order does not give retired employees a general right to continue occupying official accommodation.

The benefit is conditional on the child being enrolled in school from Class 1 to Class 12, the timing of the employee’s retirement and compliance with the prescribed documentation and payment requirements.

The concession also has a clearly defined end date.

Once that date passes, the employee has to vacate the accommodation or face action under the applicable rules.

The bottom line

Maharashtra’s August 14, 2026 GR gives retiring government employees a temporary cushion to keep their official accommodation when their children are still in school.

The most significant benefit is for employees retiring between July and December, who can potentially retain their government residence until June 30 of the following year.

But the concession comes with two clear conditions: the child must be studying in Classes 1 to 12 and the employee must pay five times the existing licence fee during the extended stay.

After the permitted period ends, the accommodation must be vacated immediately.

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