National Pension Scheme: Good News for central government employees! Government contribution to NPS to rise to 14% of basic salary
|National Pension Scheme: Good News for central government employees! Government contribution to NPS to rise to 14% of basic salary
In a bonanza for government employees, the Cabinet Thursday raised the government’s contribution to National Pension Scheme (NPS) to 14 per cent of basic salary from the current 10 per cent, sources said. Minimum employee contribution will, however, remain at 10 per cent. The Cabinet also approved tax incentives under 80C of the Income Tax Act for employees’ contribution to the extent of 10 per cent, they added. Presently, the government and employees contribute 10 per cent of basic salary each to NPS.
While the minimum employee contribution remains at 10 per cent, the government contribution has been increased from 10 per cent to 14 per cent. The Cabinet, headed by Prime Minister Narendra Modi, also allowed government employees to commute 60 per cent of the fund accumulated at the time of retirement, up from 40 per cent at present. Also, employees will have the option to invest in either fixed income instruments or equities, sources said.
As per the Cabinet decision, if the employee decides not to commute any portion of the accumulated fund in NPS at the time of retirement and transfers 100 per cent to annuity scheme, then his pension would be more than 50 per cent of his last drawn pay, sources said. The government did not announce the decision in view of the ensuing polls in Rajasthan Friday. While the government is yet to decide on the date of notification of the new scheme, sources said such changes usually come into effect from the beginning of a financing year, meaning April 1, 2019. This formula for changes in the NPS was worked out by the Finance Ministry based on the recommendation of a government-appointed committee.
I request to all govt employees kindly raise voting slogan vote for the govt which resume old pension scheme. Raise your voice for your right.
This is lollipop. We should not agree to this
only OLD PENSION SCHEME.
Stand together for old pension. not for NPS for any cause.
biscuits for a employee
.
only and only old pension nothing else……… why politicians not apply NPS to them also if it is too good
NPS should be withdraw easily like gpf then will be profit for employee
old pension and gpf is much better than NPS
NPS is not good for employee
not like employees this news
only lolypop. only OPS another nothings
only old pension scheme .
supreme court said that NPS not in favour of employees… its govt tactics to lure us by giving 4% more.. we r not fools to celebrate this.. old pension is gold pension…
Only Old Pension scheme is best
OPS IS BEST
nethahokobi yehi scheme lagu karna chaye????????????
only pension solution is OPS
restore for old pension……?