Rajasthan chief minister Ashok Gehlot (file picture)
Jaipur: In a landmark move, and perhaps against the trend of governments departing from the norm of service pension, Rajasthan Chief Minister Ashok Gehlot has announced that his government is ending the 10 per cent deduction from the basic salary of state government staff. The practice of deduction will be ended with effect from 1 April this year.
Under the New Pension Scheme (NPS), an amount of 10 per cent was made from the basic salary of the employees recruited since January 2004 every month. With the re-introduction of the earlier scheme, this deduction will cease, 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. It is estimated that with the elimination of the deduction, each employee will stand to gain by Rs 2,000 to Rs 10,000 every 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.
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.
(Based on IANS feed)