Pension Increase 15% – Punjab – 12.07.2024

Pension Increase 15% – Punjab – 12.07.2024

OFFICE MEMORANDUM

Subject: Pension Increase

I am directed to state that Governor of the Punjab has been pleased to sanction an increase @15% (fifteen percent) of net pension w.e.f. 01″ July, 2024, until further orders to all civil pensioners of Government of the Punjab.

• The 15% increase in pension as allowed vide Para 12(i) of this Department’s circular letter No. FD-PC-2-1/2011, dated 11-07-2011. 7.5% increase in pension allowed as vide Para I of this Department’s circular letter No.FD.SR.III-4-259/2015(A), dated 23-07-2015 and 15% increase in pension as allowed vide Para of this Department’s circular letter No.FD.SR.III-4-160/2021. dated 21-07-2022, shall be admissible to the new pensioners who would retire on or after 01.07.2024.
• The 15% increase in pension as mentioned at Para-1 above will not be admissible to the pensioners who would retire on or after 01.07.2024.
• For the purpose of admissibility of increase in pension sanctioned in this circular letter, the term “Net Pension” means “pension being drawn” minus “Medical Allowance”.
• The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Punjab Civil Services Pension Rules as well as on the Compassionate Allowance.

• If the gross pension sanctioned by the Government of the Punjab is shared with any Government in accordance with the rules laid down in Part-IV of Appendix-III to the Accounts Code, Volume-I. the amount of the increase in pension will be apportioned between Government of Punjab and the other Government concerned on proportionate basis.

• The increase in pension sanctioned in this circular letter will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance.
•  The benefit of increase in pension sanctioned in this circular letter will also be admissible to those civil pensioners of the Punjab Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.08.1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (Increase) Acts. The payment will be made at the applicable rate of exchange.

On 12th July 2024, the Government of Punjab announced a 15% increase in pensions for retired government employees. This increase is aimed at helping pensioners cope with rising costs of living, such as inflation, healthcare, and daily expenses.

Additional Benefits:

1. Financial Stability for the Elderly: Many pensioners rely solely on their monthly pensions as their primary source of income. This increase provides greater financial security for those who no longer have the means to earn a living, making it easier to afford daily essentials.
2. Medical Expenses: Older individuals often face higher medical costs. The extra amount from the pension increase can help pensioners afford necessary treatments, medications, and hospital visits.
3. Encouraging Saving: Some pensioners may also choose to save the additional income. This can help them build a small financial cushion for emergencies or future expenses, reducing their financial stress.
4. Support for Families: Many retired individuals also support their families or dependents. This 15% increase can provide much-needed financial relief to pensioners who help care for children, grandchildren, or other dependents.
5. Government’s Long-Term Vision: The pension increase is part of the Punjab government’s broader efforts to improve the standard of living for senior citizens. By addressing their financial needs, the government hopes to improve the overall well-being of retired employees and their families.

Key Points:

1. Who Benefits? The increase applies to all retired employees of the Punjab government. This includes people who have retired from various government departments and are receiving a pension.
2. Why the Increase? Due to inflation, the prices of essential goods and services have risen. Many pensioners struggle to cover their basic needs with the current pension amounts. By increasing pensions by 15%, the government hopes to provide some relief.
3. When Does it Start? The 15% increase took effect from 1st July 2024. This means that pensioners will start receiving the higher amount in their payments from July onward.
4. What’s the Impact? For example, if a pensioner was receiving 10,000 rupees per month, they will now receive 11,500 rupees after the 15% increase. This extra money can help cover rising living costs.

Conclusion:

The Punjab government’s 15% pension increase is designed to help retired government employees manage the financial pressures of inflation and higher living costs. This increase came into effect on 1st July 2024, and all eligible pensioners will see this benefit reflected in their monthly payments going forward. This is a positive step toward improving the well-being of pensioners in Punjab.