7th pay Commission: Pressure pays off as government announces enhanced pension, puts more money in staff pockets
7th pay commission: Sustained pressure to raise salaries exerted by central government employees has brought a very good news on pensions. The NDA government has ordered increase in its contribution for its employees covered under the National Pension System to 14 per cent of the basic salary from the existing 10 per cent, revealed Finance Minister Arun Jaitley Monday.
What is more, the minimum employee contribution to NPS will continue to remain 10 per cent. As many as 18 lakh central government employees will benefit through an increase in the eventual accumulated corpus, greater pension payouts after retirement. This will also ensure no additional burden that will augment old-age security at a time when life expectancy is rising. Image source: Reuters