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The Bharatiya Janata Party (BJP) government in Rajasthan has taken a significant step towards improving the financial well-being of its employees by increasing the maximum gratuity limit from ₹20 lakh to ₹25 lakh, aligning it with the Central government's policy. This move, announced on August 28, 2024, reflects the government's commitment to providing financial security to its workforce, particularly in their later years. However, the decision on implementing the Unified Pension Scheme (UPS), a contentious issue that has sparked political debate in the state, remains pending.
The proposed introduction of UPS has generated considerable controversy. While the BJP government has remained silent on the refund of ₹40,000 crore contributed towards the National Pension System (NPS) by state employees following the restoration of the Old Pension Scheme (OPS) by the previous Congress regime, the issue has become a focal point of political sparring. State employees have expressed reservations about the UPS due to a lack of clarity regarding its implementation and potential impact on their retirement benefits. Former Chief Minister Ashok Gehlot has added fuel to the fire by demanding that the current government clarify its intentions regarding the OPS and UPS, further escalating the debate.
Amidst this uncertainty, the state government has opted for a more pragmatic approach by increasing the family pension payable to the spouse of a deceased employee by 10%. This move provides crucial financial support to families during difficult times. Additionally, the government has raised the ceiling for outpatient department (OPD) medical expenses for both serving and retired employees from ₹20,000 to ₹30,000 per year, demonstrating a commitment to ensuring access to healthcare for its workforce. The decision to extend promotion and benefit eligibility to employees of district courts who have more than two children, aligning it with a similar decision made for government employees in March 2023, further underscores the government's efforts to address long-standing concerns and ensure equitable treatment within its workforce.
The state government's focus on improving the financial well-being of its employees, while navigating the complex issue of pension reform, highlights the delicate balance between immediate concerns and long-term planning. The decision to increase the gratuity limit and enhance benefits for employees is a positive step, but the future of pension reform remains uncertain. The debate surrounding the UPS is likely to continue, with the government facing pressure to provide clarity and address the concerns of its employees. The outcome of this debate will have significant implications for the financial security and retirement plans of government employees in Rajasthan.
Source: Rajasthan increases gratuity limit for government employees; no decision on UPS implementation