CHENNAI: The state government on Saturday decided to increase the monthly OAP (Old Age Pension) by Rs 200 to Rs 1,200 per month.

A decision to this effect was taken at the meeting of the state cabinet chaired by Chief Minister MK Stalin at the secretariat Saturday morning. Talking to media persons after the meeting, state finance minister Thangam Thennarasu said, "A major decision has been made. Tamil Nadu has been implementing several social security schemes. The monthly Old Age Pension would be increased to Rs 1,200 from the existing Rs 1,000 per month. A decision to this effect was taken at the cabinet meeting chaired by the CM." Of the Rs 1,200 paid per beneficiary, the union government contributes Rs 300 per beneficiary aged above 80 years and Rs 200 for the rest, while the remaining sum is paid by the state government.

Pointing out that the pension scheme introduced in 1962 at Rs 20 per month is being increased to Rs 1,200 now and about 30.55 lakh existing beneficiaries would benefit from the increase, Thennarasu said that apart from the existing beneficiaries, about 74.23 lakh applications for OAP are pending. The cabinet also decided to soon disburse OAP to the eligible beneficiaries among the applicants. Noting that an additional expenditure of Rs 745.91 crore would be incurred by the state owing to the hike, the minister also informed that the monthly disabled pension would also be increased from Rs 1,000 to Rs 1,500 per month.