Contribution of 10 percent to National Pension System to make the retirement income scheme

Contribution of 10 percent to National Pension System to make the retirement income scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 366
ANSWERED ON: 24.06.2019

National Pension System

Raksha Nikhil Khadse
Will the Minister of FINANCE be pleased to state:-

(a) whether the Government proposes to enhance the contribution which is presently at 10 percent to National Pension System (NPS) to make the retirement income scheme more attractive;

b) if so, whether the Government has notified this change;

(c) if so, the details thereof; and

(d) if not, the date proposed for the notification of the new scheme?

ANSWER

Finance Minister

(a) to (c) Government has increased the mandatory contribution by Central Government from 10% to 14% of the basic pay+DA for all the Central Government employees covered under National Pension System Tier-I. The employees’ contribution rate would remain at the existing 10% of the basic pay+DA. This has been notified vide Gazette Notification No. 1/3/2016 PR dated 31.01.2019, and has come into force with effect from 01.04.2019.

d) Does not arise in view of reply given to parts (a) to (c).

Source: Lok Sabha