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Family pension for bank employees is set to increase with a uniform payout of 30 per cent of the last salary, Debasish Panda, Secretary, Department of Financial Services, said on Wednesday.
“In continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the Indian Banks’ Association with the unions on November 11, 2020, there was a proposal for enhancement of family pension and also the employers’ contribution under the NPS. This has been approved by the Finance Minister,” Panda, who was accompanying Finance Minister Nirmala Sitharaman, said.
This move would make family pension go up to as much as ₹30,000-35,000 per family of bank employees.
Till now, family pension for bank employees is under three slabs of 15 per cent, 20 per cent and 30 per cent of the last pay drawn with a cap of ₹9,284.
“They need to get a decent amount to survive and sustain. Now the cap has been removed and there will be a uniform slab of 30 per cent,” he told reporters.
Employer’s contribution
The government has also approved the proposal to increase the employer’s contribution under the NPS to 14 per cent from the existing 10 per cent for both the employer and employee contributions.
“Thousands of families of PSU bank employees will be benefited by the enhanced Family Pension, while the increase in employer’s contribution will provide increased financial security to the bank employees under the NPS,” said an official release.
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