NEW DELHI/MUMBAI (Reuters) – Thousands of state employees in the western Indian state of Maharashtra held protests on Friday, joining employees in other states who are demanding higher pension benefits.
After opposition-ruled states increased pension benefits, government employees in other states, particularly those ruled by Prime Minister Narendra Modi’s party, including Haryana and Nagaland, began protesting to seek higher pensions.
Workers are pushing for the restoration of a pension plan discontinued about two decades ago.
In 2004, the federal government and majority of states scrapped a scheme that entitled employees to a state-funded life-long pension equivalent to almost half of their salary. It was replaced with a scheme funded through employee and government contributions.
In Mumbai, the state capital, and other cities, nearly 1.7 million employees have been on strike since Tuesday, said union leaders, who rejected a government offer to set up a panel to discuss workers’ demands.
“The perils of the new pension scheme are visible,” Vishwas Katakar, organiser of a committee of 35 protesting unions, told Reuters, adding employees faced a bleak future without adequate pension benefits.
The new pension scheme, which invests in equities and state bonds, provided a monthly pension of 2,000-5,000 rupees ($24-$60) to an employee, less than a quarter of the benefits under the old scheme, he said.
Devendra Fadnavis, state finance minister told lawmakers earlier this month that the old pension scheme was no longer affordable due to fiscal constraints.
Analysts said demand for higher pension benefits could become a major political issue in the coming state assembly elections and general elections next year.
“This is a genuine demand of employees. The federal government should find a way within fiscal constraints,” said N.R. Bhanumurthy, an economist and the vice chancellor at B.R. Ambedkar School of Economics University, Bengaluru.
On Friday, the government in the northern hilly state of Himachal Pradesh, where the main opposition Congress party seized power from Modi’s party earlier in December, restored the old pension scheme for state employees.
($1 = 82.5250 Indian rupees)
(Reporting by Manoj Kumar and Rajendra Jadhav;Editing by Elaine Hardcastle)
By Manoj Kumar and Rajendra Jadhav
Weekly market update : From rout to flight
Circle: Which bank will host the USDC? – Crypto Recap
U.S. authorities weighing in on possible Credit Suisse-UBS deal: Bloomberg News
UBS examines takeover of Credit Suisse, with possible Swiss govt guarantee – sources
ECB’s Holzmann expects more rate hikes to fight dogged inflation
UBS seeks Swiss backstop in any Credit Suisse deal – Bloomberg News
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
ECB’s Wunsch does not see repeat of 2008 financial crisis
BlackRock says not participating in any plans to acquire Credit Suisse
Sam Bankman-Fried, U.S. prosecutors near new bail agreement
Credit Suisse, UBS crunch talks; US bank fallout: What you need to know
Australia did not promise US support for Taiwan in submarines deal
Ruling party likely to sweep Kazakh parliamentary election
China probes ex-party chief of Guangdong rural credit union over discipline violations
North Korea fired ballistic missile towards sea off east coast – Yonhap
North Korea fires ballistic missile as US-South Korean drills go on
Analysis-Sudan paramilitary leader jostles for role ahead of civilian handover
Japan discusses security in first foreign minister visit to Solomon Islands
At least 19 killed in bus accident in Bangladesh
CREDIT SUISSE’S PLAN TO SPIN OFF ITS INVESTMENT BANK UNDER THE F…
source