National Pension System: If an employee is suspended from the job, he can choose to continue his contribution. If he was suspended by mistake, the contribution amount will be re-determined according to his new salary.
NPS Rule Change: There is big news for central employees. Before the increase in dearness allowance, the Modi government at the Center has issued new guidelines, changing some rules related to contribution in the National Pension System (NPS). It also mentions 10 percent contribution from monthly salary to NPS.
According to media reports, the Department of Pension and Pensioners Welfare, under the Ministry of Personnel, Public Grievances and Pensions, has issued a memorandum on 7 October 2024 saying that the NPS amount will be rounded off to the nearest whole rupee, while the contribution will be reviewed from time to time.
New guidelines of NPS
If an employee is suspended, he will have the option to continue the NPS contribution, whereas if he joins the service again after the suspension is lifted, the contribution will be recalculated based on the salary at that time.
If there is any mistake in the contribution, it will be deposited in the pension account of the beneficiary along with interest.
If an employee is absent or on leave without pay, he will not be required to make NPS contribution.
If the employee goes to another department or another institution, then only he will have to make this type of contribution.
It is mandatory for employees in probation period to make NPS contribution as well. If there is a delay in contribution, the affected employees will get interest along with their contribution.
Know what is NPS
NPS is a kind of saving scheme. In this, the investor gets the benefit of pension after the investment amount matures. In this, after the age of 60, the investor gets a part of the invested amount and the other part is received as pension. Under NPS, the government employee has to give 10% of his basic salary in his pension and in this the state government contributes only 14%.
