National Pension Scheme

The Central Government now contributes 14% to the National Pension Scheme

As per the new decision, the contribution made by the Central Government in the National Pension System (NPS) started in 2004 has been increased to 14%.

Apart from this, the amount drawn from the National Pension System (NPS) after retirement has also been exempted.

Under the National Pension System, 10% of the contributions were received by the Central Government, which has now been increased to 14%. Under this scheme, the minimum contribution to the employee is 10% of the basic salary.

With the increase in contribution of pension scheme, the Government will be able to add additional burden of Rs 2,840 crore in the financial year 2019-20.

Under the National Pension System, pensioners can withdraw 60% of the total deposit amount, while the remaining 40% is deposited in the pension scheme. This 60% amount is now tax free. Earlier, 40% of the tax was tax free, and 20% was taxed.

National Pension Scheme National Pension Scheme Reviewed by S Current Affairs on December 12, 2018 Rating: 5
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