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Bank employees family pension to be increased to 30% of last pay drawn

The government has approved the IBA’s proposal to increase the bank employees family pension to 30 percent of the last drawn salary
Bank Employees family pension to be increased to 30% of last pay drawn
Bank Employees family pension to be increased to 30% of last pay drawn

New Delhi/Mumbai: In a bid to provide relief to families of bank employees, the government has approved the Indian Banks Association’s (IBA) proposal to increase the family pension to 30 percent of the last salary drawn.  This move would make family pension go up to as much as Rs 30,000 to Rs 35,000 per family of bank employees. The announcement came from the Secretary of Department of Financial Services, Ministry of Finance, at a press meet addressed by Finance Minister Nirmala Sitharaman in Mumbai Wednesday.

Department of Financial Services’ Secretary Debashish Panda (IAS) informed that, in continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the IBA 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, he said. Panda further said that, “earlier the scheme had slabs of 15, 20 and 30 percent of the pay that a pensioner drew at that point of time. It was capped subject to a maximum of Rs 9,284/-. That was a very paltry sum and Finance Minister was concerned and wanted that to be revised so that family members of bank employees get a decent amount to survive and sustain.”

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The government has also approved the proposal to increase the employer's contribution under the NPS to 14% from the existing 10 percent.

Thousands of families of PSU bank employees will be benefited from the enhanced Family Pension, while the increase in employers contribution will provide increased financial security to the bank employees under the NPS.

Finance Minister, as part of her two-day visit to Mumbai, reviewed the performance of the public sector banks and launched the EASE 4.0 reform agenda for smart banking.

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