Extend the benefit of Gratuity to all NPS Employees

Extend Gratuity Benefits to All NPS Employees

The Confederation is calling for the extension of the Gratuity benefit to all employees under the National Pension System (NPS). This important step would ensure that the struggles of NPS employees do not go in vain. With this benefit, all employees would have access to a retirement plan that provides them with financial security and peace of mind. The Confederation believes that this change would be a vital step towards improving the lives and wellbeing of NPS employees across the country.

IMPORTANT GOVT ORDER

A MAJOR VICTORY OF THE STRUGGLE OF CENTRAL GOVT EMPLOYEES:

Confederation of central Govt Employees & Workers have been continuously fighting against pension reforms implemented by Govt in tune with the neo-liberal policies and demanding SCRAPPING OF THE NEW PENSION SYSTEM (NPS).

Further we have been demanding that those employees who are covered by NPS should be eligible for payment of Death cum Retirement Gratuity (DCRG) and Family Pension and also Govt guaranteed Minimum Pension and Compensation for price rise (Dearness Relief).

Now the Govt has conceded one of our demand. Govt of India has issued orders to extend the benefit of Gratuity to all NPS Employees. Further the Cabinet has decided to constitute a committee for streamlining the implementation of NPS.

We shall present the remaining issues before that Committee also. Scrapping of NPS is one of the main demand of 2016 September 2nd General Strike also. No struggle will go in vain. Let us make the strike a grand success

M.Krishnan,
Secretary General
Confederation.

Finance Ministry issued orders on 26.8.2016 : Extension of benefit of Retirement Gratuity and Death Gratuity to the Central Government Employees covered by new Defined Contribution Pension System (National Pension System) – regarding.

Gratuity is a lump sum payment made by an employer to an employee as a token of gratitude for their long and dedicated service.

Currently, gratuity is provided to employees covered under the Payment of Gratuity Act, 1972, which includes employees in organizations with 10 or more employees.

Employees who are not covered under the Payment of Gratuity Act, such as those in small establishments, contractual workers, or those covered under the National Pension System (NPS), are currently excluded from receiving gratuity.

Extending the benefit of gratuity to all NPS employees will ensure parity in retirement benefits for all government employees. Currently, NPS employees do not receive gratuity, even though they contribute towards their pension throughout their service.

To extend the benefit of gratuity to all NPS employees, the government would need to amend the existing guidelines and legislation governing the NPS scheme.

Extending the benefit of gratuity to all NPS employees would provide them with financial security and recognition for their service. It would also align the retirement benefits of NPS employees with those of other government employees.

One potential challenge could be the financial implications for the government or employer. However, with proper planning and implementation, this can be overcome.

Currently, discussions and proposals are being made to extend the benefit of gratuity to all NPS employees. However, no definitive decision or implementation has been made yet.