These government employees get good news: Jagan Cabinet to scrap contributory pension scheme

In what comes as a piece of good news for Andhra Pradesh government employees, the newly-constituted Cabinet, at its first meeting under the chairmanship of Chief Minister Y S Jaganmohan Reddy, agreed in principle to scrap the contributory pension scheme. The scrapping of the scheme has been a long-pending demand of the government employees. The cabinet has also decided to form a committee headed by the Finance Minister to look into various aspects related to scrapping of contributory pension scheme. Soon after taking charge, Reddy had told media that his Cabinet, in its first meeting on June 10, would take decisions on granting interim relief and on scrapping Contributory Pension Scheme.

The newly elected chief minister also told the officials that no effort should be spared to root out corruption and make it exemplary in the country in good governance. During the meet, the cabinet also decided to set up another high-level committee with finance and transport ministers and experts to study the possibilities of merging the AP State Road Transport Corporation with the state government.

During the six-hour long meeting, the cabinet also decided to pass on a huge hike in the salary of various categories of workers, 27 per cent interim relief to the government employees and implementation of cash assistance scheme for farmers. 

The cabinet decided to increase the salary of community health workers under the Tribal Welfare Department from current Rs 400 to Rs 4,000 a month. This move is expected to benefit 7,265 health workers working in the Integrated Tribal Development Authority (ITDA), officials said.

Jagan Reddy, who took oath as the Chief Minister on May 30, inducted 25 Ministers, including five Deputy Chief Ministers on June 8. In the assembly elections, the YSR Congress emerged victorious in 151 constituencies of the total 175 in the state.