Landmark Decision! Modi Government hikes PSBs employees pension; bank contribution for staffs increased to 14% - Check Details Here
The Finance Ministry has approved a proposal to increase the contribution of owners / companies under Family Pension and NPS.
In a slew of announcements made by Finance Minister Nirmala Sitharaman, it was decided to increase the pension payout for bank staff by 30 per cent of their last drawn salary.
The announcement was made during a press conference after the launch of the EASE 4.0 by Finance Minister Sitharaman.
This announcement was made by Department of Financial Services (DFS) India Secretary Debasish Panda. He said that the pension payouts to bank employees could increase to Rs 30,000- Rs 35,000 from the earlier cap of Rs 9,284.
The cap on pay is removed and uniform slab of 30 per cent will be in force. Pension can go as high as Rs 35,000, DFS Secretary said.
“There will also be 40 per cent rise in contribution of employer (Banks) in NPS. It will go up from 10 per cent to 14 per cent,” the DFS Secretary said.
Similarly, the Finance Ministry has approved a proposal to increase the contribution of owners / companies under Family Pension and NPS. Its benefits will now accrue to family pensioners.
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Uniform pension is now flat 30 per cent for the pensioners' families as well, he added. The bank's contribution to NPS will also increase by 40 per cent. This has been increased from 10 per cent to 14 per cent.
The pay limit has been removed and a uniform level of 30 per cent will now be applied. Now the pension can be increased up to Rs 35,000.
Sitharaman said: “In order to provide relief to the families, who have lost their sole breadwinners, this decision has been taken.”
She also appreciated the Customs Department. “The tireless work done by the Customs Department during the period of COVID-19 as well as the special work done to clear the important material as soon as possible is commendable. Without the incomparable work of the GST department, it would not have been possible to collect revenue of Rs 1 lakh crore per month,” she added.
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