Modi Govt. set to unveil Rs 5,000-crore pension plan

Modi government is on its mission to improve the quality of life of Indian citizens and to make this nation a progressive one. The government is bringing new reforms which will be helpful in this nation’s progress.

There are many such reforms to talk about, but the major ones are Demonetization, GST bill and the latest one is 5000 crore pension plan. The main objective behind demonetization was to reduce corrupting and to put an end to the black money (parallel economy). Similarly, GST bill is aiming at a single tax system. GST stands for Goods and Service Tax. Now people will not have to pay several taxes such as VAT, Sales Tax, Service Tax, etc. They will have to pay only a single tax that is GST. This will reduce the tax amount for common man and still will be more profitable for government.

Keeping this mission in mind the Modi government has recently launched a pension scheme for Rs. 5000 crore. This new pension scheme will be beneficial for more than 5 million government (central) employees. As per this new formula, the pension of the retired employee will be calculated on basis of the current salary for that particular position.

For example, if a central government employee retires while working as a clerk and his pay was according to 6th pay commission. After retirement he will start getting pension based on his salary as per 6th pay commission. Now suppose after 7 years, 7th pay commission is enforced and salary of clerk is increased. Now, in this case, the pension of the retired employee will also be revised as per the salary of 7th pay commission.

This new pension system will be discussed among cabinets for their approval, most probably in next week.Modi government is on its mission to improve the quality of life of Indian citizens and to make this nation a progressive one.

The government is bringing new reforms which will be helpful in this nation’s progress.There are many such reforms to talk about, but the major ones are Demonetization, GST bill and the latest one is 5000 crore pension plan. The main objective behind demonetization was to reduce corrupting and to put an end to the black money (parallel economy). Similarly, GST bill is aiming at a single tax system. GST stands for Goods and Service Tax. Now people will not have to pay several taxes such as VAT, Sales Tax, Service Tax, etc. They will have to pay only a single tax that is GST. This will reduce the tax amount for common man and still will be more profitable for government.

Keeping this mission in mind the Modi government has recently launched a pension scheme for Rs. 5000 crore. This new pension scheme will be beneficial for more than 5 million government (central) employees. As per this new formula, the pension of the retired employee will be calculated on basis of the current salary for that particular position.

For example, if a central government employee retires while working as a clerk and his pay was according to 6th pay commission. After retirement he will start getting pension based on his salary as per 6th pay commission. Now suppose after 7 years, 7th pay commission is enforced and salary of clerk is increased. Now, in this case, the pension of the retired employee will also be revised as per the salary of 7th pay commission.

This new pension system will be discussed among cabinets for their approval, most probably in next week.


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