Assam Govt Revises Compassionate Grant Distribution and Pension Rules to Boost Employee Financial Security

GUWAHATI: In a move aimed at ensuring greater financial security for government employees and their families Assam Chief Minister Himanta Biswa Sarma has introduced new policy for the distribution of compassionate grants. Effective immediately, the policy mandates that 80% of compassionate grant provided upon the death of a government employee will be allocated to the spouse. The remaining 20% will be reserved for the deceased’s parents. This change marks a departure from the previous practice. The entire amount was traditionally granted to the spouse.

The Chief Minister emphasized that the revised policy is designed to provide adequate financial protection to parents of deceased government employees. "This decision ensures that parents who may have been financially dependent on their children, receive a share of the grant thus safeguarding their interests," Sarma said. The move is seen as compassionate step to address needs of elderly parents who may otherwise face financial insecurity following the loss of their child.

In addition to changes in compassionate grant distribution Assam government has also approved amendments to pension regulations. These amendments aim at improving financial stability of government employees. The Assam Cabinet recently ratified changes to Rule 10(1)(b) of General Provident Fund (Assam Services) Rule 1937. This directly impacts employees under Old Pension Scheme. The amendment allows state employees to contribute between 6.25% and 100% of their monthly emoluments to provident fund. This revision offers employees greater flexibility. They can manage their retirement savings effectively. It enables them to increase their contributions according to their financial capacity.

Moreover, updated regulation imposes a cap on total contributions, including arrears at Rs 5 lakhs per financial year. This cap is expected to help employees manage their savings more effectively. It also prevents any excessive accumulation that could strain the provident fund system. The government highlighted that this change is aimed at alleviating financial hardships. It is faced by retirees and current employees, particularly by providing them with ability to withdraw funds in times of emergency.

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