Skip to main content

Govt staff who joined afte 2004 to get gratuity

By
Government employees recruited after January 2004 would also be entitled to receive gratuity on retirement or death while in service, the Modi government decided on Friday.
The Centre and many state governments switched to the new pension scheme from January 1, 2004, that required employees to contribute 10% of their monthly salary towards their pension with a matching contribution from the government. Some states, except West Bengal and Tripura, joined later.
More than 300,000 central government employees recruited after 2004 are covered by the NPS. The Seventh Pay Commission had lamented that many of them might not have enough money in their pension fund at retirement due to the government’s inability to firm up the rules of the game on time.
Employees covered by the National Pension Scheme (NPS) were not entitled to any additional benefits other than the government’s contribution to their pension fund. But it had been argued that this was unfair since the NPS only replaced the pension, not other benefits.
Gratuity is calculated as a proportion of the last salary drawn and takes into account the number of years put in by the employee. The upper limit for the gratuity was recently raised from Rs 10 lakh to Rs 20 lakh, in line with the recommendation of the Seventh Pay Commission.
The government had provisionally relaxed the no-gratuity rule for new recruits in 2009 to help family of young employees had died. On Friday, the department of pensions announced this would be a permanent feature.
“It has been decided that the government employees covered by National Pension System shall be eligible for benefit of retirement gratuity and death gratuity on the same terms and conditions as applicable to (other) employees,” said the pension department order. It will come into force from 2004.
Hindustan Times New Delhi,27th August 2016

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

By
  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...
Post a Comment
Read more