The Finance Ministry has taken a big decision regarding the pension of bank employees. The family of a deceased bank employee will get 30% of the last salary as a pension. Finance Minister Nirmala Sitharaman attended the meeting for an annual performance review of public sector banks (PSBs) in Mumbai today. She met the heads of all 12 public sector banks. Addressing the media after this meeting, the Finance Minister has made a big announcement regarding the pension of banking employees.
Indian Banking Association (IBA) earlier recommended that family pension, which was payable at the slab rates of 15 per cent, 20 per cent and 30 per cent for different categories of pensioners, should be improved without any fixed cap. Finance ministry had decided to approve this recommendation to benefit thousands of bank employees and their families.
According to this announcement, if a bank employee dies, then his/her family will get 30% of the last salary as a family pension. Earlier the family pension in such cases was Rs 9,284. Now the family of banking employees can get a pension up to a maximum of Rs 35,000.
Contribution for employee pensions under NPS hiked
Debashish Panda, secretary, department of financial services, also said that the contribution for employee pensions under NPS is hiked to 14% from 10% earlier.
“Pension payouts to bank employees could increase to Rs 30,000-35,000 from the earlier cap of Rs 9,284. PSBs’ contribution for employee pensions under NPS hiked to 14% from 10% earlier,” said DFS Secretary.
Earlier this month, the dearness allowance (DA) increased hiked for the bank employees and pensioners. The new DA rate will be applicable from August and will be effective from August to October and applicable for bankers following 11th BPS salary structure. The Dearness Allowance (DA) for bank employees has been hiked to 27.79 per cent, up by 2.1 per cent over the last quarter. DA for bank employees and workmen for 10th BPS has been increased by 3 per cent, compared to the last quarter. The raise in DA will be in place for the next three months, beginning from August. Over 8 lakh employees will be benefited from this decision. A hike in DA will increase the net salary drawn by the bank employees every month as it is directly linked to the basic salary.
