The Karnataka government has announced its decision to scrap the New Pension Scheme (NPS) and implement the Old Pension Scheme (OPS) soon, according to Deputy Chief Minister G Parameshwara. As reported by Business Standard, Parameshwara made this announcement during a state-level Teachers' Day celebration organised by the School Education and Literacy and Higher Education departments. The chief minister has held discussions on the issue, with the government taking an important decision to implement the old pension scheme. This announcement comes as the government addresses employee benefit concerns and regulatory changes affecting pension schemes.
The reintroduction of OPS was described as a long-standing demand of government employees and also a promise made by the Congress party ahead of the elections, according to Parameshwara's statement. As reported by Business Standard, the OPS could not be reintroduced so far for certain reasons, but Chief Minister D K Shivakumar was keen on scrapping the NPS and implementing the old pension scheme. This decision represents a significant policy shift that addresses employee expectations and political commitments made during the election campaign.
The Deputy Chief Minister confirmed that the government has taken an important decision to scrap the NPS and implement the OPS soon, as reported by Business Standard. The announcement was made during a state-level Teachers' Day celebration, indicating the government's commitment to addressing pension-related concerns of its workforce. The decision comes after years of employee demands and political promises, with the chief minister now actively pursuing the implementation of the old pension scheme.
The New Labour Codes implemented on November 21, 2025, have resulted in significant changes to employee benefit provisions. As reported by multiple sources, the codes consolidate 29 existing labour legislations into a unified framework comprising four codes: Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020 and Occupational Safety, Health and Working Condition Code 2020. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to these regulatory changes. The codes have resulted in a one-time increase in provision for employee benefits on account of recognition of past service costs, affecting both government and private sector pension schemes.
The implementation of the New Labour Codes has created additional financial obligations for employers. According to the latest financial statements, companies are now required to account for past service costs under the new framework. The codes have resulted in a one-time increase in provision for employee benefits that companies must account for in their financial statements. This regulatory change affects both government and private sector employers, requiring them to reassess their employee benefit provisions and make necessary adjustments to their financial reporting.
