New Delhi: The Central government seems all set to introduce a brand new pension scheme that will benefit around 50 lakhs of their employees. The scheme should deliver a relatively good cheer in their mind as it calculates the pension in the current salary of a Central government staff.
Beneath the new plan, if somebody retires as a director underneath the 6th pay panel, his/her pension could be fixed on the basis of the remuneration of a director into the 7th pay commission a decade later. The Union cabinet is scheduled to approve next week a fresh Rs 5,000-crore pension formula this is certainly likely to benefit more than five million central government employees.
“If a person retired as a director of the sixth pay commission, ten years later his pension would be fixed (based on) the salary of a director in the seventh pay commission,” explained a senior government official.
“The new pension scheme will be put up to the cabinet for approval next week.”
The brand new scheme – devised by an empowered committee of secretaries – have noticeable difference in the two manners where the seventh Central Pay Commission (7th CPC) had advised pension calculation.
The initial of these formulae was simple: Pension could be fixed at 2.57 times 50 % of the past salary drawn. Mathematically expressed, if S could be the last salary drawn and P may be the pension, the formula is: P = (S x 2.57) / 2, and even simplified: P = S x 1.285.
The progressive method was found to own lacunae as 20% of records were found to be missing in several government departments, and officials felt this may lead to litigation in future.
“To avoid legal hurdles, the Ecos came up with the pay fixation method,” as guided by senior official.
More updates will be shared as the things get more stable and accurate data of all Central Government Employees are fetched in own server.
There are many tools available online which will calculate the 7th Pay Commission Pay scale for you. Here is the link.