Government employees news: The Center has issued new guidelines for contribution to the National Pension System (NPS). These guidelines were issued in the office memorandum of the Department of Pension and Pensioners Welfare, Ministry of Personnel, Public Grievances and Pensions, dated October 07, 2024.
According to a report by Financial Express, 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.
