Question
What is the percentage contribution of the Central
government to NPS for central government employees?Solution
NPS is mandatorily applicable on Central Government employees (except Armed Forces) recruited on or after 01.01.2004. Govt. employees make a monthly contribution at the rate of 10% of their salary and a matching contribution is paid by the Government. For central Govt. employees, the employer’s contribution rate has been enhanced to 14% w.e.f. 01.04.2019. In Aug 2021, this contribution of 14% has been extended to employees of Central Autonomous Bodies (CAB) also with effect from 01.04.2019. The contributions and investments would be deposited in the Tier I of PRAN.
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