According to a media report, the guidelines confirm the existing provisions that mandate a contribution of 10% of the monthly salary to the NPS. The amount will always be rounded off to the nearest whole rupee.

At the same time, during the period of suspension, employees can choose to continue their contribution. If the suspension is later considered as duty, the contribution will be recalculated based on the salary at that time.

Who has to contribute and who does not?

All discrepancies in contribution will be credited to the pension account along with applicable interest. Employees who are absent or on unpaid leave will not be required to contribute. Employees working on deputation in other departments or other organizations will also have to contribute to NPS, if they have not been transferred etc.

Employees on probation will also have to make mandatory contributions. In cases where there is a delay in depositing the contribution, the affected employees will get their contribution along with interest.

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The post Central govt employees alert! New guidelines issued on NPS contribution & pension, check details immediately first appeared on Rightsofemployees.com.

All industries, businessmen, taxpayers, experts etc. are sending their expectations from the budget to Finance Minister Nirmala Sitharaman through different mediums. Private sector employees also have high hopes from this budget.

Private sector employees are expecting some reduction in tax burden. He wants the National Pension System limit for him to be increased to 14 per cent at par with government employees. Experts believe that this will help private employees in planning their retirement. At present, government employees are eligible for enhanced deduction up to 14% of basic salary in NPS under section 80CCD (2) of the IT Act.

At present, the limit of NPS contribution is 10 percent.

At present, the limit for private sector employees is only 10 percent. Experts believe that due to the lower limit, private sector employees may be less enthusiastic to choose NPS as a retirement investment.

What is NPS

The National Pension System, operated under the National Pension System Trust, is a government-run investment scheme that gives the subscriber the option to decide the preferred allocation across various asset classes. NPS offers two types of accounts Tier-1 and Tier-2.

The budget session is starting from January 31.

Significantly, this time the budget session of the Parliament will start from January 31, 2023, on which day President Draupadi Murmu will address the joint sitting of Lok Sabha and Rajya Sabha. The session will have 27 sittings and will continue till April 6. The first phase of the session will be from January 31 to February 14. After a break of about a month, the second phase of the budget session will start from March 12 and will continue till April 6.

The post NPS Contribution Limit: Good news! Government may increase the limit of NPS contribution, know details here first appeared on Rightsofemployees.com.