Jharkhand has decided to increase its contribution to the National Pension System (saving) for its employees to 14 per cent from the existing 10 per cent of basic salary to make retirement income more attractive for its workforce.

Chief minister Hemant Soren, who chaired a cabinet meeting on Tuesday, agreed to the plan to start the enhanced contributions with effect from July 1, 2021. The state government is estimated to incur an additional expense of Rs 322 crore on account of this move that will benefit around 5 lakh employees.

In another significant decision, the state cabinet announced the setting up of a corpus titled, Jharkhand Rajya Fassal Chatipurti Yojana, earmarking Rs 25 crore to begin with for distribution as compensation to farmers in the event of crop losses. A total of eight decisions were cleared by the cabinet at Tuesday's meeting.

Vandana Dadel, cabinet coordination secretary who briefed reporters, said that the Union government had increased its share to 14 per cent in NPS accounts of its employees in July, 2019. “In the light of that, the state government has also decided to increase its share to 14 per cent, a hike of 4 per cent. The state exchequer will have to bear an additional fiscal burden of Rs 322 for this. Contributions will be hiked with effect from July 1, 2021,” she said.

On the fund for crop damages, Dadel said the proposal was tabled by the state agriculture department to provide a financial cushion in the form of quick compensation to farmers in the event of crop losses. “The compensation will be paid from the interest accrued on the corpus (Rs 25 crore),” he said.

The cabinet also passed rules and regulations for the conservation and uplift of religious places for tribals like sarna sthals, jaherthans among others. “Following proper rules in place, sites of religious importance of tribals can now be safeguarded, conserved and beautified in a planned manner with a maximum investment of up to Rs 5 crore per site. For works above Rs 25 lakh, tenders have to be floated,” she said.

Among the other cabinet decisions were amendments in eligibility for getting jobs under compensatory grounds, compulsory voluntary retirement for a forest range officer of Pakur on disciplinary grounds and a nod for rules for e-filing of cases at courts.