The central government has introduced new guidelines for contributions to the National Pension Scheme (NPS), according to a report by the Financial Express. The Department of Pension and Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances and Pensions, issued an Office Memorandum on October 7, outlining updates to the rules on employee contributions to the NPS.
Key NPS Contribution Guidelines:
- Standard Contribution: The memorandum reiterated the existing provision requiring employees to contribute 10% of their salary to the NPS, subject to periodic review.
- Suspension Period: Employees under suspension now have the option to decide whether or not to contribute to the NPS during that period. If the suspension is later deemed as duty, contributions for the suspended period will be recalculated based on the employee’s salary.
- Credit Adjustments: Any discrepancies in contributions will be credited to the employee’s pension account, along with applicable interest.
- Deputation: Employees on deputation to other departments or organizations must continue to make contributions as if they had not been transferred.
- Probation Period: Employees on probation are required to make NPS contributions. However, employees on unpaid leave or absent without pay are not obligated to contribute during that time.
- Delayed Contributions: In the event of a delay in crediting contributions, affected employees will receive their contributions with accrued interest.
The DoPPW has directed all ministries and departments to ensure these guidelines are communicated to staff handling NPS-related matters.
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