PSU Employees Will Get 30% Of Last Salary As Pension; Ceiling Removed For Family Members

Finance Minister of India, Smt. Nirmala Sitharaman, has announced that public sector employees will be given 30% of the last salary drawn as their pension. 

The Minister met with the heads of public sector banks (PSBs), where this announcement was made.

Read on to find out more about the announcements by the Finance Minister!

Pension For PSU Employees To Be 30% Of Their Last Drawn Salary

The news that the Government has approved the IBA’s proposal to increase the family pension to 30% of the last salary drawn will definitely come as a relief for  families of bank employees.

This means that the pension will now go up to Rs. 30,000 to Rs 35,000 per family of bank employees.

Shri Debasish Panda, who is the Secretary, Department of Financial Services, Ministry of Finance, said that the scheme previously had slabs of 15, 20 and 30 percent of the pay that a pensioner drew at that point of time. It was capped subject to a maximum of Rs 9,284/-.

As per Panda, “That was a very paltry sum and Finance Minister Smt. Sitharaman was concerned and wanted that to be revised so that family members of bank employees get a decent amount to survive and sustain.”

Contribution Of Employers Under NPS Increased to 14% From 10%

The government has also approved the proposal to increase the contribution of the employers under the NPS to 14% from the existing 10%. This will go towards an increase in financial security to the bank employees under the NPS.

The Finance Minister also reviewed the performance of the public sector banks and launched EASE 4.0 reform agenda for smart banking. She also said that banks have been requested to work with all state governments to push  the ‘one district, one product’ agenda.

The 1st edition EASE 1.0 and EASE 3.0 were launched  in February 2020. Their primary aim was to improve the banking experience for customers with the help of  technology, alternate data, as well as analytics.

She has also requested the banks to maintain communication with export promotion agencies, chambers of commerce and industry so as to understand the needs of exporters on a timely manner.