Cabinet approves Rs 2300 cr for One Rank One Pension
Posted on: 08:45 PM IST Sep 24, 2012
New Delhi: In what comes as a bonanza for the ex-servicemen, the Cabinet on Monday approved the long pending One Rank One Pension. The Cabinet okayed a package of Rs 2300 crore for One Rank One Pension.
The armed forces have been agitating for a One Rank One Pension scheme for quite long.
According to the scheme, every ex-serviceman will be eligible for the same pension at his rank, regardless of when he joined or retired.
The cabinet has also cleared dearness allowance by seven per cent for all central government employees. Reports indicate the new dearness allowance will now come up to 72 per cent of basic pay, and is expected to cost the exchequer more than Rs 5000 crore.
Notably, Prime Minister Manmohan Singh had during his speech on the Independence Day mentioned about the One Rank One Pension scheme.