Owing to the cover of the 7th Pay Commission, the pension cover is sought to be widened. Set up by the Government of India, the Pay Commission aims at giving the recommendations that are related to the work as well as the pay structure of all the employees working under the different civil as well as the military divisions of the Government of the country.
The new movement which is likely to be taken up by the Government is known to be in lines with the previously made proposals. While many await what all will the 7th Pay Commission bring along, forth stated are some of the expected announcements.
Pension Cover To Increase Under 7th Pay Commission
As per the reports, the Government is known to have started working on widening and growing to get more and more people under the pension cover. Earlier, as many as 3.09 crore people were under the cover of the pension scheme but now, plans by the Centre are on to expand it and thus include double the number of people under it. Now, approximately 6 crore people are to be included in this new move whereas no amount of financial allocation has been included additionally. Also, as per the reports on 7th Pay Commission, the SC quoted that the amount of the coverage, as well as the pension, should both be ascertained by the Union Of India.
Currently, the financial contribution of the Centre sums up to an amount of Rs. 200 crores and this amount have remained unchanged since the last 11 years of time, although, this amount of contribution is less as stated by the Supreme Court said the reports.
7th Pay Commission | GPF’s New Rate Of Interest
Apart from widening the base of the people under the pension cover, the Union Government has additionally increased the rate of interest of the GPF that is the General Provident Fund as well as the other related schemes by a quantum of 0.4-8 percent points for the quarter beginning from the month of October to December. Before this update on 7th Pay Commission, the rate of interest of the PPF was also increased, the announcement of which was done last month.