When did pensions begin worldwide? How much did Indians receive back then? The numbers will shock you!
Pensions have a history of more than 2,000 years. In the 1770s, the practice of granting pensions began in Europe with various European dignitaries. Within a few years, pensions were awarded to Indian sepoys and civil servants. Historians suggest that the first pensions were issued to British military officers, many of whom are still widely recognized, such as Lord Cornwallis. It has not been recorded who the first Indian pensioner was, but more than likely, a sepoy or havildar on retiring from service was the first individual to receive a pension.
According to the media reports, an ordinary sepoy was entitled to a pension of 4 to 7 rupees per month, while a British officer received a pension of 100 to 200 rupees per month; today, these amounts are comically small, but back then, Re 1 could sustain an entire family for a month. Later, in 1889, German Chancellor Otto von Bismarck introduced the first public pension for elderly people over 70 years old, making pensions go from being an honor to a right, and this became the basis for social security systems worldwide.
The history of pensions in India goes back to the era of British rule. The East India Company made provision for its officers and soldiers to receive some income on retirement, so the concept of pension was very much born out of necessity. For government employees, pensions are said to have been formally introduced in 1881. The amount was, during the years following that date, at least socially recognized to be enough to provide a modicum of income to allow a retiree to live without worry about food, water, or shelter.
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