Centre’s Contribution To NPS Hiked To 14% of Basic Salary

In a bid to make retirement income scheme more attractive for central government employees, the government has agreed to chip in a higher 14 per cent of the basic salary of an individual as its contribution to the National Pension System (NPS), a top source said.

The move would benefit over 36 lakh central government employees.

Also, individual contributions, which will continue to be capped at a maximum of 10 per cent of the basic salary, will be exempt from taxable income.

Centre’s Contribution To NPS Hiked To 14% of Basic Salary

The Union Cabinet on Monday approved a slew of measures to offer more benefits to members of the National Pension Scheme (NPS). Under the new approved changes, the Centre’s contribution to NPS has been increased to 14 per cent of from 10 per cent of the basic salary, said Finance Minister Arun Jaitley.

Addressing the press conference, Jaitley said NPS subscribers will now be able to withdraw 60 per cent of the accumulated corpus without having to pay any tax on it.