The centre has released new guidelines for contributions to the National Pension System (NPS), according to a Financial Express report.
The guidelines were released in an Office Memorandum from the Department of Pension and Pensioners’ Welfare, which comes under the Ministry of Personnel, Public Grievances and Pensions, dated October 07, 2024.
What are the mentioned NPS contribution guidelines?
The guidelines reiterate existing provisions, which includes the 10% of monthly salary contribution requirement to the NPS. The amount will always be rounded up to the nearest whole rupee.
However, during periods of suspension, employees can choose to continue their contributions.
If the suspension is later deemed as duty, the contributions will be recalculated based on the salary at that time.
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All discrepancies in contributions will get credited to the pension account along with applicable interest.
Employees who are absent or are on unpaid leave won’t be required to contribute.
Employees on deputation to other departments or other organisations will still have to contribute to the NPS as if they haven’t been transferred at all.
Employees on probation also have to compulsorily make contributions.
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In cases where there are delays in crediting contributions, affected employees will receive their contribution with interest as well.
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