PremiumNPS contribution: The central government has clarified that no revision in regard to New Pension System (NPS) contribution has been done for the employees posted at autonomous central bodies under various ministries. The Ministry Finance’ clarification came during a written reply in this regard on the floor of the Lok Sabha on 9th August 2021. In its reply, the central government said that for all new recruits to the Central Government service from 1st January 2004, monthly NPS contribution has been raised from 10 per cent to 14 per cent with effect from 1st April 2019 but for employees of central autonomous bodies, their monthly NPS contribution matched by the central autonomous bodies is still at 10 per cent of their basic pay and Dearness Allowance (DA).
Clarifying about the NPS percentage for employees in central autonomous bodies, the Ministry of Finance reply in the Lok Sabha says, "No decision has been taken by the Department of Expenditure with regard to revision of the Government's monthly contribution percentage in NPS in respect of Central Autonomous Bodies." The written reply went on to add that NPS was extended to all the new entrants joining Central Autonomous Bodies under all Ministry/Department of Central Government on or after 1st April 2004. Later, the scope of NPS was extended to those employees of Autonomous Bodies recruited prior to 1st January 2004 and covered under CPF (Central Provident Fund). This NPS scheme provided for the recurring monthly contribution rate by the employee at 10 per cent of basic pay and DA with a matching contribution by the autonomous body at 10 per cent of basic pay and DA.
The NPs scheme was introduced for all new recruits to the Central Government service from 1st January 2004, wherein monthly contribution of 10 per cent of basic pay and DA was to be paid by the employee and matched by the Central Government. Thereafter, the Central Government’s monthly contribution has been enhanced from 10 per cent of basic pay and DA to 14 per cent of basic pay and DA, for the Central Government employees, with effect from 1st April 2019.
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