The state government of Gujarat has introduced a one-time option for employees appointed before April 1, 2005, allowing them to opt for the Old Pension Scheme (OPS), a significant move aimed at benefiting a substantial number of employees. Approximately 60,245 state government employees are expected to gain from this decision, which offers them the opportunity to revert to the OPS, a pension model considered more beneficial in terms of post-retirement security compared to the New Pension Scheme (NPS) introduced later.
Earlier the Uttar Pradesh cabinet made an important decision regarding the pension scheme for government employees in Uttar Pradesh. The cabinet decided to give employees a one-time option to choose the old pension scheme. This option is available to state government employees, employees of government-aided educational institutions, and employees of autonomous institutions funded by the state government. Click here to read this news.
The Uttar Pradesh (UP) government has also allowed police employees to choose the Old Pension Scheme (OPS). This decision comes after police personnel voiced their demands to bring back the OPS. However, there’s a key point: this option is only available for those who joined the police force before March 28, 2005. Click here to read this news in detail.
Gujarat govt decision
In line with this, the state government has also agreed to enhance other employee benefits as per the recommendations of the 7th Pay Commission. This includes an increase in the transfer travel allowance and the retirement travel allowance, which will now be implemented at higher rates. These allowances are essential for employees relocating due to work transfers and those retiring, ensuring they receive adequate financial support during these transitions.
Moreover, the current charge allowance, a form of additional compensation for employees taking on higher responsibilities, will be revised to match the 7th Pay Commission norms. This revision will create a more equitable and fair structure for employees who assume greater responsibilities within their roles. In addition, the travel and daily allowance (TA/DA) rates will be adjusted to meet the evolving needs of employees, reflecting changes in living and travel costs.
Furthermore, retirement benefits will be strengthened with the enhancement of the retirement gratuity and death gratuity amounts. These changes are aimed at providing increased financial security for employees and their families, especially in unforeseen circumstances like the untimely death of an employee.
Highlighting these key decisions, government spokesperson Rushikesh Patel stated that the state government, under the leadership of Chief Minister Bhupendra Patel, has taken these steps as part of a broader strategy to enhance employee welfare. He noted that the implementation of these measures would incur an additional annual financial burden of approximately Rs 200 crores. However, this investment is a reflection of the state’s commitment to ensuring the well-being of its employees and acknowledging their contributions to the functioning and progress of the state.
This package of reforms not only strengthens financial security for government employees but also underscores the government’s dedication to maintaining fair and competitive compensation structures in line with modern standards, ensuring the workforce remains motivated and well-supported.
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