NPS Rules: If you are also a central government employee, then this news is of use to you. Yes, some new guidelines related to contribution to the National Pension System (NPS) have been issued by the Central Government. According to the report of Financial Express, the Department of Pension and Pensioners Welfare working under the Ministry of Personnel, Public Grievances and Pension has issued a notification related to this change on 7 October 2024. Let's see what was said in it.

What was said in the new rule?

According to the new rules, like before, employees have been asked to deposit 10% of their salary every month in the National Pension System (NPS), there is no change in this. This money will always be recorded to the nearest whole rupee. For example, if your contribution is Rs 1453.53, then you will be paid Rs 1454 for it. It says that if the employee is suspended from the job, then he can opt to continue his contribution. If later he comes to know that he was suspended by mistake, then the amount of contribution will be decided again according to his new salary.

Contribution is necessary for employees working on probation.
If there is any mistake in the amount of contribution, it will be deposited in the pension account along with interest. If the employee remains absent or is on leave without pay, then he will not have to contribute to the NPS account for that period. If the employee is transferred to another department or organization, then he will still have to continue contributing to NPS as if he has not been transferred. Employees working on probation are also required to contribute. If there is a delay in contribution, the affected employees will get interest along with their contribution.

What is NPS?
Under the New Pension Scheme (NPS), 10% of the employee's basic salary and dearness allowance (DA) is deducted from the pension fund. Apart from this, the government contributes 14 percent of the basic salary. The New Pension Scheme is linked to the stock market, which simply means that the pension of a government employee directly depends on the fluctuations of the market. To get a pension on retirement, 40% of NPS should be invested in an annuity. NPS does not offer a guaranteed pension after retirement, due to which government employees have been protesting for a long time.

UPS will be implemented next year
Let us tell you that after the demand of government employees, the Unified Pension Scheme (UPS) was introduced by the government. It has been said to be implemented from 1 April 2025. Under this, the responsibility of funding the pension will not be of the employee. In this, the government will bear 18.5 percent of the basic salary of the employees. Being a guaranteed pension scheme, employees working for at least 10 years will be entitled to get a minimum pension of Rs 10,000. Apart from gratuity, lump sum money is received at the time of retirement in UPS. Under this, the retiring employees will be entitled to receive 50% of the average basic salary as a pension in the last 12 months.