For quite some time now central government employees have been calling for the restoration of old pension scheme, which, as it appears, is yet to be addressed. They claim that there should be reintroduction of old pension scheme for their peaceful survivals in the future. The first financial budget under Prime Minister Modi 3.0 government was highly anticipated.
Union Finance Minister Nirmala Sitharaman was expected to announce something, however, it did not materialize. No such statement was issued in the course of or attached to the financial budget. This course of action of central employees is ongoing currently. The Government came up with this scheme in the year 2004 and has been at the back of the employees since then. Will the Old Pension Scheme be brought back or not, at this time, no one can say anything officially. But the outlook of the government in regard to the Old Pension Scheme does not seem encouraging.
What was the Old Pension Scheme?
The old Pension scheme was in place in India for a long time. As per the scheme, there existed a provision for paying a pension to the employees after they retire every month. The pension that was given was fifty percent of the last salary drawn by an employee. But in the year 2004, this scheme was entirely abolished during the regime of the then BJP Prime Minister Atal Bihari Vajpayee.
Those who secured employment before the year 2004 will be entitled to a pension in the future. As for those who became government employees in the year 2005 and later, there is astonishingly no provision for payment of a pension upon retirement, rather shocking. On this note, it has been implemented something called NPS scheme by the government. Under NPS, a portion of the salary of an employee is contributed to the NPS. The amount collected will be accessible when they retire. The government too seeks to attach some form of pension under NPS, but for now, much cannot be said officially.
Central employees will get this gift
The Modi government is about to offer yet another huge present to the central government employees that has been a major topic of discussion lately. The central government is likely to enhance the dearness allowance of central government employees by four percent, after which there is a high probability of a whopping rise in salary.
This can help around 1 crore families, which will be like a booster dose. After increase, the DA will be 54%. At present, the employees are getting the benefit of 50% DA. The revised rate of DA will come into effect from July 1, 2024.
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