7th Pay Commission Latest News: The Centre yet again didn’t announce hike in minimum pay and fitment factor hike for the Central Government employees beyond 7th Pay Commission recommendations. But it did gave a reason for these employees and pensioners to smile ahead of the Lok Sabha Elections 2019. The good news for the CG employees and pensioners comes in the form of a hike in the amount of government’s contribution in the National Pension Scheme (NPS).
(7th Pay Commission: What Does Hike in Gratuity Limit Mean For Employees – Details Inside)
Presenting the Budget 2019 in Lok Sabha during Budget Session of Parliament on Friday, Finance Minister Piyush Goyal announced that the government’s contribution in NPS will now be 14 per cent as against earlier 10 per cent. Meanwhile, the contribution of the employees to their basic salary in NPS remains same at 10 per cent.
Making the announcement, Goyal said, “For workers and labourers, Piyush Goyal says that a new pension scheme will come up to ensure an increase in centre’s contribution by four per cent.”
As per Zee Business, the hike of 4 per cent includes the dearness allowance (DA) and basic pay. Furthermore, the pension of these employees has also been increased from Rs 3,500 to Rs 7,000.
What is NPS?
The National Pension Scheme (NPS) is a government sponsored scheme for government employees. It was launched in January 2004. However, in the year 2009, it was opened up to all sections. On the basis of 7th Pay Commission recommendation, a committee of secretaries was set up which submitted its report in 2018. The Union Cabinet approved the decision of hiking Centre’s contribution to NPS on the basis of the draft.
As far as the Central Government employees and their demand for a hike in minimum pay and fitment factor beyond 7th Pay Commission is concerned, the Minister of State for Finance P Radhakrishnan has claimed twice, in a matter of 10 months, that the government is not considering or mulling a plan to accept the demands of the Central Government employees.