India Budget 2024: Government employees have been demanding the implementation of the Old Pension Scheme for a long time. The confidence of government employees regarding NPS has not been established yet. In such a situation, it will be interesting to see during today’s budget speech whether the Finance Minister makes any announcement regarding NPS.
Old Pension Update: Central and state government employees have been angry with the government for a long time demanding the restoration of the Old Pension Scheme (OPS). Himachal Pradesh, Chhattisgarh, Punjab, Rajasthan and Jharkhand governments had also restored OPS in the past days in view of the opposition of the employees. But the central government had clearly refused to restore OPS. After the announcement made by Finance Minister Nirmala Sitharaman a few days ago, a committee has been formed under the chairmanship of Finance Secretary TV Somanathan. Sources claim that the government is considering giving pension guarantee to the employees.
Will the government guarantee 50% pension?
The protesting employee unions say that after retirement, the fixed benefit under NPS is not available, whereas in OPS the employee gets a fixed pension. The government is trying to assure the central employees coming under NPS that they will get the same benefit as OPS after retirement. The government is trying to give 50% of the monthly salary received by the employees covered under NPS as pension after retirement. Now the question is whether the Finance Minister will make any announcement regarding this in the budget?
Will the Finance Minister make an announcement on NPS?
Before the budget, the Finance Minister is expected to make two types of announcements on NPS. First, income tax payers are expecting an increase in the limit of NPS. Secondly, government employees are demanding OPS. In such a situation, some kind of announcement can be made by the government regarding the guarantee on pension received under NPS. Both government and private employees will keep an eye on NPS in today’s budget speech.
It is necessary to deposit money without withdrawal for 25-30 years
Recently, some media reports claimed that the government is taking this step because employees are worried whether they will get adequate pension after retirement or not. The scheme running for employees recruited after 2004 is giving good returns. But for that, it is necessary that the employee continues to deposit money without any withdrawal for 25-30 years. In the New Pension Scheme (NPS), government employees deposit 10% of their basic salary and the government contributes 14% to it.
Will there be any announcement regarding NPS in the budget?
Under NPS, there is a provision to give pension to employees after retirement on the basis of the amount deposited during the job. The Somanathan Committee has studied the pension schemes of other countries and the changes made by the Andhra Pradesh government. This committee is also studying the effect if the government guarantees a certain amount on pension. The study made it clear that it is possible for the central government to guarantee 40-45% pension. Today, when the budget is to be presented in the Parliament by the Finance Minister, everyone’s eyes will be on the announcement made by the Finance Minister regarding NPS.
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