Assam Chief Minister Himanta Biswa Sarma has announced significant changes to the state’s compassionate grant distribution policy and pension regulations.
Under the new policy, 80% of the compassionate grant provided upon the death of a government employee will be allocated to the spouse, while the remaining 20% will be reserved for the deceased’s parents. This marks a notable shift from the previous practice, where the entire amount was granted solely to the spouse. Chief Minister Sarma emphasized that the revised policy ensures financial protection for parents who may have been dependent on their children, safeguarding their interests during a vulnerable time.
“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 stated, highlighting the government’s compassionate approach towards elderly parents who might otherwise face financial insecurity after losing their child.
In addition to the compassionate grant changes, the Assam government has also approved amendments to pension regulations aimed at improving the financial stability of government employees. The Assam Cabinet recently ratified changes to Rule 10(1)(b) of the General Provident Fund (Assam Services) Rules, 1937, which directly impacts employees under the Old Pension Scheme. The amendment now allows state employees to contribute between 6.25% and 100% of their monthly emoluments to their provident fund, offering them greater flexibility to manage their retirement savings.
Furthermore, the updated regulation imposes a cap of Rs 5 lakhs per financial year on total contributions, including arrears. This cap is expected to help employees manage their savings effectively while preventing excessive accumulation that could strain the provident fund system. The government emphasized that this change aims to alleviate financial hardships faced by retirees and current employees, particularly by providing them with the ability to withdraw funds in times of emergency.