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.
Read at: Business-standard
Popular
Label List
- -BONUS ORDER
- 'BONUS
- AICPIN
- AIDEF
- AIR INDIA
- AIRF
- AITUC
- ALLOWANCE
- annual increment
- ARMY
- BANK EMPLOYEES
- BSNL
- cadre restructuring
- cadre review
- CBSE
- cgda
- CGHS
- CHILD CARE LEAVE
- children education allowance
- CONFEDERATION
- DA
- DC JCM
- DEARNESS ALLOWANCE
- dearness relief
- DOPT
- EMPLOYEES PROVIDENT FUND
- EPFO
- FAMILY PENSION
- finmin
- FIXED MEDICAL ALLOWANCE
- GDS
- GENERAL PROVIDENT FUND
- GPF
- GRADE PAY
- HOLIDAY
- HOLIDAY HOMES
- HOUSE BUILDING ADVANCE
- HOUSE RENT ALLOWANCE
- HRA
- INCOMETAX
- JCM
- JCM III
- KENDRIYA VIDYALAYA
- LEAVE TRAVEL CONCESSION
- LTC
- LTC 80 FARE
- LTC ADVANCE
- MACP
- MATERNITY LEAVE
- MAY DAY
- MINISTRY OF DEFENCE
- MINISTRY OF FINANCE
- MODIFIED ASSURED CAREER PROGRESSION
- NATIONAL ANOMALY COMMITTEE
- NATIONAL PENSION SCHEME
- NATIONAL PENSION SYSTEM
- NC JCM
- NEW PENSION SCHEME
- NIGHT DUTY ALLOWANCE
- NJCA
- OFB
- one rank one pension
- ONE RANK ONE PENSION.
- ORDINANCE FACTORY BOARD
- paternity leave
- pay fixation
- PCDA
- PENSION
- post offices
- POSTAL EMPLOYEES
- RAILWAY BOARD
- RAILWAY BONUS
- RAILWAY EMPLOYEES
- retirement
- retirement age
- revision of pension
- VRS
- WOMEN EMPLOYEES
Follow by Email
DISCLAIMER
The contents and information given in this blog are purely informative in nature and should not under any circumstances be taken as authority. All efforts had been made to ensure accuracy of the content on this (www.centralgovernmentemployees.com) blog. The same should not be construed as a statement of law or used for any legal purposes. centralgovernmentemployees.com accepts no responsibility in relation to the accuracy, completeness or otherwise, of the contents. Users are advised to verify/check any information with the relevant departments and to obtain any appropriate professional advice before acting on the information provided in the blog. We cannot guarantee the availability linked pages at all times.
Post a Comment