India's army veterans win battle to reform pension scheme
Veterans have fought for the changes for four decades but protests have intensified in recent months.
Three million Indian army veterans won a decades-long battle yesterday to change the way their pensions are calculated, as the government bent to protesters' demands and announced it would overhaul the controversial scheme.
India's armed forces personnel, who typically retire earlier than other public sector workers, have mounted fierce opposition in recent months to the current pension scheme, which is based on their salary when they retire.
They argue this leaves them vulnerable to inflation eroding their livelihoods and say it is unfair a soldier who retired recently should receive a larger pension than one who left service earlier.
Under the newly agreed 'One Rank, One Pension' (OROP) deal, ex-servicemen will now receive a pension based on 2013 salaries, to be refixed every five years - irrespective of when they retired.
"Despite the financial burden, the government of India has taken the decision to implement OROP," Defence Minister Manohar Parrikar said.
The scheme will cost 80 billion rupees (HK$9.3 billion) to 100 billion rupees, he said. Military pensioners will receive arrears dating back to July 2014.
"Now the issue is hopefully behind us, I appeal to the veterans to continue to contribute to the vital task of nation building and development," Parrikar said.
Introducing OROP was one of Prime Minister Narendra Modi's key pledges as he led the Bharatiya Janata Party's successful campaign for last year's general election.
Veterans have fought for the OROP scheme for four decades but protests have intensified in recent months, with ongoing rallies in New Delhi and several protesters going on hunger strike.
India has one of the world's largest armies, with around 1.32 million active personnel and 2.14 million reservists. Retirement age varies with rank, with the maximum age of service ranging from 56 to 62 years, according to the Indian Army website.
India is also considering extending maternity leave to 24 weeks from 12 weeks, a government official said, adding it would encourage more women to breastfeed and help reduce high rates of child malnutrition.
"We feel the current three months is not enough time for women to adequately care for their newborns," said an official from the ministry of women and child development.
"The proposal, if approved, would give working women in all sectors - public, private and even the informal sector such as domestic workers - some kind of protection."
