Report of Kamgar Ekta Committee (KEC) correspondent
A large majority of public sector workers and workers of various Central and State Government departments have been continuously demanding scrapping of New Pension Scheme (NPS) and restoration of Old Pension Scheme (OPS). While governments are refusing to listen to crores of its workers and insisting on continuing NPS, many stories are coming out highlighting the hardships and losses that workers are suffering under the NPS regime.
Under the Defined Contribution Pension Scheme (DCPS), which transitioned to the NPS model after 1 November 2005, all government employees must contribute 10% of their basic salary towards pension, and the state will contribute the same amount. While paying salaries, the concerned departments are supposed to deduct 10% of basic salary and deposit the amount immediately along with the state’s contribution to the Permanent Retirement Account Number (PRAN) of the employee.
However, news reports have indicated that while paying salaries, the concerned departments often promptly deduct 10% of the basic salary but do not deposit the same to the relevant PRAN accounts immediately. In one such case, thousands of teachers and non-teaching staff in government-aided private schools across Mumbai city have alleged that the concerned government department has failed to deposit their National Pension Scheme (NPS) contributions into their individual accounts since January 2025. According to the Maharashtra Progressive Teachers’ Association (MPTA), this lapse affects over 15,000 employees. MPTA stated that as of the of end July 2025, the state had not yet deposited NPS deductions from January to June 2025, thus causing long-term financial loss for many. The State President of MPTA has demanded immediate rectification and accountability.
Responding to the concerns, an education officer reportedly said, “This appears to be a technical error. We will investigate and resolve the issue at the earliest.” Is it possible for anybody to believe that a “technical glitch” will need 6 months to resolve? It is very clear that the state is just not bothered about the welfare of its workers.
According to the office of the Comptroller and Auditor General (CAG) of India, a circular from the Department of Expenditure states that any delay in crediting NPS contributions, not attributable to the subscriber, results in the amount being credited with interest for the delayed period. However, there is no mention of any mechanism to ensure that this circular is executed by default in such cases. It is reported that according to the CAG, even a one-day delay in the transfer of funds can negatively impact the final pension amount, potentially reducing it by around ₹40,000!
Very clearly, the Central and State governments are attempting to implement “austerity measures” by cutting down on welfare measures and even the salaries of its workers. At the same time, the same governments, without any discussion with the working people of our country, waive off lakhs of crores of loans given to big capitalists with a sweep of their hand.
It is necessary to ponder on such experiences and raise the question, “Are these governments really of the people, for the people and by the people” or “are they governments of the capitalist class, for the capitalist class and by the capitalist class?”