Punjab govt hikes share in pension scheme

The Punjab cabinet on Monday decided to hike its share in the National Pension Scheme from 10 per cent of basic pay and dearness allowance to 14 per cent, in line with a move by the Centre some months back.

The four percentage point-hike in the government's contribution comes after demands by workers' unions and will cost the state an additional Rs 258 crore every year.

It will come into effect from April 1, 2019, a government statement said.

Earlier, the state government was required to match the minimum 10 per cent contribution made by its employees who are part of the scheme.

The state government has 3,53,074 employees. Of them 1,52,646 are covered under the new National Pension Scheme (NPS).

This decision is in consonance with the notification issued by the Union finance ministry on January 31, a Punjab government press statement said.