Old Pension Vs NPS: The Union Cabinet on Friday increased dearness allowance and dearness relief from 4 per cent to 42 per cent. This will benefit 47.58 lakh central government employees and 69.76 lakh pensioners.
National Pension Scheme: Government employees across the country are on strike for the new pension scheme, meanwhile the central government has made a big announcement for its employees, hearing which you will be happy. The Union Cabinet on Friday increased the dearness allowance and dearness relief from 4 per cent to 42 per cent.
This will benefit 47.58 lakh central government employees and 69.76 lakh pensioners. After the meeting of the Economic Affairs Committee of the Union Cabinet, Information and Broadcasting Minister Anurag Thakur told reporters that the increase in dearness allowance and dearness relief will affect the exchequer by Rs 12,815.60 crore annually.
Committee formed to review the new pension system
At present, the New Pension Scheme (NPS) is applicable in the country, which is also known as the New Pension System. Government employees have lodged protests many times regarding this pension scheme and have demanded old pension scheme i.e. Old Pension Scheme (OPS).
Let us tell you that after this change, dearness allowance to central employees and additional installment of dearness relief to pensioners will be given from January 1, 2023. The increase in Dearness Allowance and Dearness Relief has been based on the approved formula, which is based on the recommendations of the Seventh Pay Commission.
Nirmala Sitharaman introduced the bill
In view of the demand of government employees, Union Finance Minister Nirmala Sitharaman presented a bill in Parliament on Friday, according to which a new committee is to be formed. It is the job of this committee to review the new pension system completely. The leadership of this committee has been given to the Union Finance Secretary.
When did the new pension system come
Let us tell you that this new pension scheme (NPS) was introduced in the year 2004, which replaced the old pension system ie OPS. Both the NPS and OPS schemes have some merits and there are some drawbacks as well. The government says that maintaining continuity in the old pension system puts a heavy burden on the government exchequer, keeping this in mind the new pension scheme was launched.
