National Pension System: The government is aiming to provide pensions to employees equal to 40–50% of their most recent income

 National Pension System: The government is aiming to provide pensions to employees equal to 40–50% of their most recent income

National Pension System: The government is aiming to provide pensions to employees equal to 40–50% of their most recent income

National Pension System: Government workers have been clamoring for the reinstatement of the previous pension plan for years. There are also ongoing protests in relation to this. Government workers in five states are still receiving benefits under the previous pension plan. The Central Government has said in Parliament that the Old Pension Scheme (OPS) is not being considered for implementation.

The National Pension System (NPS) is about to undergo significant modifications by the Central Government. By year's end, the Finance Ministry intends to make announcements on modifications to the National Pension Scheme (NPS) for public servants.

According to a senior government source, the national government is thinking of implementing the Andhra Pradesh model. According to the Andhra model, pensions are guaranteed at 40–50% of the worker's most recent base pay. Any deficit in the pension fund would be covered by the government under the proposed market-linked program. The government's contribution will rise, while employees' contributions will stay the same.

"By the end of the year, the new scheme will be announced," a senior Finance Ministry official said. The Andhra Pradesh model serves as the primary basis for the scheme's modalities, which are being worked on by the committee. The Center will guarantee that seniors get at least 40–50% of their most recent pay, and it will be linked to the market.

Employees now pay into the National Pension System (NPS) with 10% of their base pay, and the government matches that amount with 14%. It is unclear, nonetheless, whether the new program would be inflation-linked like the Andhra program. It is anticipated that the Finance Secretary's committee would be able to talk more about this at its next meeting.

Sources claim that in order to draw votes ahead of the elections, BJP-ruled states are pressuring changes to the National Pension System and the introduction of a program akin to the previous pension system. The former pension system's payouts are being received by workers in five states.

Pensioners in Andhra Pradesh get 50% of their last basic wage in addition to an inflation-linked Dearness Allowance (DA). Data from the Pension Fund Regulatory and Development Authority (PFRDA), which oversees the national pension scheme, shows that 79% of the Rs 9 lakh crore assets managed by the National Pension Scheme are held by workers of state and federal governments. There were 6.3 crore subscribers throughout the different NPS plans as of March 31, 2023. State and federal government personnel made up 60.72 lakh and 23.86 lakh, respectively, of the total number of clients.

Politics of the Eighth Pay Commission

The staff are also demanding the Eighth Pay Commission. However, the administration hasn't made its position clear yet. On the other hand, experts think government workers need to be patient. because, as of right now, the administration would not comment on the Eighth Pay Commission. Actually, preparing for it still has time.

The 8th Pay Commission still has open channels. It's being discussed if the administration can carry it out after the 2024 general elections. indicating that a new pay commission might be formed. Pay will keep rising in tandem with Dearness Allowance (DA Hike). Salary revisions, however, will only take place at the eighth pay commission. The 8th Pay Commission may see a significant hike in 2024.

When will the new salary structure be put into effect?

The Eighth Pay Commission must be put into effect during the following two years if it is formed before the end of 2024. In other words, the 8th Pay Commission might be implemented starting in 2026. This would be the largest pay increase for central personnel that has ever occurred.

There could be a lot of changes between the 7th and 8th Pay Commissions if the sources are to be trusted. Additionally, the Pay Commission's composition may be altered once every ten years.