Old Pension Scheme: The Union government employees have been screaming for restoration of the old pension scheme for quite some time. This seems not to have happened and the accusation is that the old scheme should be brought back to the employees for a peaceful future survival. The very first financial budget under the Prime Minister Modi 3.0 was significantly awaited.
The indications were appended more so for nothing, as per the Union Finance Minister Nirmala Sitharaman, and it did not materialize. There has been no such announcement within or appended to the budget of finance. This ongoing actions by the central employees continues right now. The scheme came into action as 2004 and has backed the employees since then. At this time, no one can say anything officially about whether the Old Pension Scheme will be revived or not. But the outlook of the government towards the Old Pension Scheme does not seem encouraging.
What Was Old Age Pension Scheme?
Old Age Pension Scheme was for a number of decades existing in India. As per such a provision, an employee would receive every month after retirement a pension based on the last salary drawn equal to fifty per cent of it. However, in the year 2004, that whole pension scheme was abolished by the BJP government under Prime Minister Atal Bihari Vajpayee.
Those fortunate enough to have landed themselves jobs before the year 2004 will receive pensions later. Upon the other hand, the government employees who were hired in 2005 and after do not have an amazing provision that permits them to receive pensions upon their retirement, which however, gets even more shocking. But on that note, it has been made something called NPS scheme by the government. Under NPS, one part of the salary of an employee gets contributed into NPS. The collected amount will be available at the time of their retirement. The government too wants to attach some form of pension under NPS, but at this moment not much can be said more on official terms.
This Is A Gift To Central Employees
With the central government is planning the newest gift for the central government employees on which everyone is buzzing a lot. The central government is expected to raise the dearness allowance for its employees by four percent, following which there is a high probability of a whopping rise in salary.
This may benefit nearly 1 crore families, largely like a booster dose. After the increase the DA will be, 54%. At present, employees are enjoying a benefit of 50%, in terms of DA. This revised rate of DA will come into effect from July 1, 2024.
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