Big Relief to Bank Employees: Finance Minister announces Hike in Pension payouts to 30%

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The Finance Minister, Nirmala Sitharaman in her Press Conference held at Mumbai declared a 30% hike in pension payout to bank staff. This will be on the basis of the last drawn salary. Pension payouts to bank employees could increase to Rs 30,000- Rs 35,000 from the earlier cap of Rs 9,284.

The DFS Secretary said that there will also be a rise in the contribution of bank employees in NPS. It will go up from 10 per cent to 14 percent, said DFS Secretary Debashish Panda.

“Pension payouts to bank employees could increase to Rs 30,000-35,000 from the earlier cap of Rs 9,284. PSBs’ contribution for employee pensions under NPS hiked to 14 percent from 10 percent earlier,” said DFS Secretary.

Nirmala Sitharaman said, “the government will have a bare minimum presence in the ‘strategic sectors’ that also include banks and financial services. She said that public sector banks have done well and have come out of Prompt Corrective Action despite the pandemic. PSBs are showing profits and two of them have done very well.”

The Union Finance Minister is in Mumbai for two days to meet key stakeholders. This is the first visit by the finance minister since the onset of the pandemic and comes at a time when a greater focus is on the government for aiding recovery because high inflation constrains the RBI.

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