For some time there have been reports that the central government may make changes to the National Pension System Scheme (NPS) offer. However, the government is not considering any modifications to the NPS offer. The Ministry of Finance has clarified the answer to this question.
What’s the matter: In fact, the question was asked in the Lok Sabha whether the government was considering revision of NPS contribution to employees employed in autonomous central agencies under various ministries. In response, the Ministry of Finance said no changes had been made or considered.
14% for central employees: Let us tell you that from January 1, 2004, the new pension system will apply to all newcomers in the service of the central government. Under this, the central government contributes 14 percent of the basic salary to its employees’ pensions. However, for the year 2019, the government’s contribution was 10 percent, which was increased to 4 percent. It was announced by Arun Jaitley as Finance Minister.
Autonomous Organizations: However, for employees of central autonomous organizations, the monthly NPS contribution is still 10 percent of their base salary. The Employees Union has also approached the Delhi High Court seeking an increase in contribution from the government. The court held that employees of autonomous bodies were not entitled to pensions equal to those of government employees. However, there is a struggle to increase employee pension contributions.
1 lakh has gone up to 7.32 lakh, this 4 rupees 42 paise share, in just three months
Let us tell you that Employees of State Governments / UTs and State Governments / UTs are also eligible to join NPS. These employees also receive a pension of up to 10 percent of base salary.
