• India's Central Government has announced an additional pension scheme for pensioners aged 80 and above.
• The additional pension is calculated as a percentage of the basic pension or compassionate allowance, increasing with the age of the pensioner.
• The Department of Pension and Pensioners' Welfare has instructed all departments and banks involved in pension disbursement to disseminate information regarding these changes.
• This move is a significant step towards supporting the elderly population, particularly in a time when the cost of living is continually rising.

In a significant move aimed at supporting the elderly, the Central Government of India has announced an additional pension scheme for its pensioners aged 80 and above. This compassionate allowance, as it is termed, is set to provide financial relief to senior citizens grappling with the rising cost of living often associated with ageing.

The Department of Pension and Pensioners' Welfare (DoPPW), under the Ministry of Personnel, PG and Pensions, issued a notification outlining the new guidelines for this supplementary benefit.

The guidelines are designed to simplify the process of distributing these additional allowances, ensuring that eligible pensioners receive their rightful benefits without delay. The additional pension is calculated as a percentage of the basic pension or compassionate allowance, with the percentage increasing with the age of the pensioner.

Specifically, senior citizens aged 80 to 85 are eligible for an additional 20% of their basic pension or compassionate allowance. Those aged 85 to 90 will receive an increase of 30%, while those aged 90 to 95 will qualify for a 40% increase.

Pension Increases with Age

Pensioners aged between 95 and 100 will receive an additional 50% of their basic pension or compassionate allowance. Remarkably, super seniors, those living 100 years or more, will be eligible for a full 100% increase, effectively doubling their basic pension or compassionate allowance.

The notification provided an example to illustrate the implementation of the new policy. A pensioner born on August 20, 1942, would be eligible for an additional pension at the rate of twenty percent of the basic pension with effect from August 1, 2022. Similarly, a pensioner born on August 1, 1942, would also be eligible for the additional pension at the same rate from the same date.

The DoPPW notification further clarified that the additional pension or compassionate allowance would be effective from the first day of the month when the pensioner reaches the designated age. This provision ensures that the additional benefits are provided promptly, without any unnecessary delays.

To ensure the smooth disbursement of these additional benefits, the DoPPW has instructed all departments and banks involved in pension disbursement to disseminate information regarding these changes.

Global Perspective on Pension Schemes

This move by the Central Government is a significant step towards supporting the elderly population, particularly in a time when the cost of living is continually rising. The additional pension will provide much-needed financial relief to senior citizens, helping them manage their expenses more effectively.

Historically, governments worldwide have implemented similar measures to support their ageing populations. For instance, in Australia, the government provides a range of benefits to its senior citizens, including the Age Pension, which is designed to provide income support to older Australians who need it, while encouraging pensioners to maximise their overall incomes.

The Australian government also provides a Pension Supplement to help eligible residents meet the costs of daily household and living expenses.

Similarly, in the United Kingdom, the government provides a range of benefits to its senior citizens, including the State Pension, which is a regular payment made by the UK government to people who have reached State Pension age. The UK government also provides a range of other benefits, such as the Winter Fuel Payment, to help older people keep warm during winter.