Rajasthan all set for Old Pension Scheme: No more 10% deduction from govt employees' basic salary

As another step towards reintroduction of Old pension Scheme (OPS), Chief Minister Ashok Gehlot has announced to end the 10 per cent deduction from the basic salary of the state government employees from April 1 onwards.

Under the New Pension Scheme (NPS), an amount of 10 per cent deduction from the basic salary of the employees recruited since January 2004 was made every month which will be abolished from the next month, the chief minister said. After adjusting the amount deducted so far in the Pensioners Medical Fund in RGHS, the remaining amount will be returned along with interest at the time of retirement.

Responding to the debate on the Appropriation Bill in the Assembly on Monday, Gehlot said that employees will get increased salary from April 1. By eliminating the deduction, every employee will get increased salary with amount varying between Rs 2,000 to Rs 10,000 per month.

In the state budget, Gehlot had announced the implementation of Old Pension Scheme from April 1 this year by abolishing the New Pension Scheme applicable to the employees recruited in 2004 and thereafter. In the New Pension Scheme, 10 per cent of the basic salary of the employee was deducted for NPS and was mixed by the government.

Around 5.50 lakh employees under the New Pension Scheme will now get said the benefit. Chief Minister Gehlot also made an announcement of Rs 20,000 pension for players above 40 years and said a Women's Cooperative Bank will be opened in Jaipur which will provide loans to women. Initially, the government will give a fund of Rs 250 crore to this bank.

Other announcements made by the chief minister include formation of the Food Safety Directorate, implementation of the girl child distance education scheme, formation of the E-Library for classes 9 to 12 at a cost of 50 crore, 5 crore to be spent on the Directorate of Peace and Non-Violence, Khadi Workers Economic Incentive Scheme to be implemented, two time milk distribution for school kids under mid day scheme, among others.

Gehlot said that the budget will be brought to the ground and announcements will be implemented.