7th Pay Commission
Here is a pension update of great importance. 7th Pay Commission for millions of central government employees. The Central Government has come up with new guidelines related to the pension of its employees. You must know these guidelines, as they might eventually influence the management of your pension and subsequently your financial planning as a government employee.
National Pension Guidelines Released
The Central Government has issued new guidelines on contributions to the National Pension System, NPS. They are applicable to the employees working with the Central Government. This was released in an office memorandum by the Department of Pension and Pensioners’ Welfare on October 7. These new NPS contribution guidelines are brought up for Period of Suspension, Period of Unpaid Leave, Problem, etc.
What are NPS Contribution Guidelines?
- The implemented guidelines are repeated for the new system which states that 10% salary must be contributed to NPS.
- This amount is cutted as an estimated value and during the period of suspension they can opt to continue this contribution.
- The other aspect is that when the suspension is deemed to be work, the contribution as computed will be redetermined using the revised salary. Pension contributions of employees are consequently kept consonant with the salary structure it is revised to.
- All the contributions differences with their interests would be remitted to your pension savings account.
- The contributions will not be made when you are on unpaid leave or not at work
- For example, while transferred employees who have been reappointed to other departments or organizations will still be required to contribute to the NPS as if they had never been transferred, this ensures contribution to the pension all through.
Guidelines for Provision of Working Employees
- The new guidelines on NPS contributions recognize the different practices regarding the duration of suspension, the duration of unpaid leave, and probationary periods that mar the impartial uniformity of pension contributions for government employees in such scenarios.
- According to the new guidelines, employees working on probation are also required to contribute to the NPS.
- If there is any delay in the crediting of the contribution amount, the affected employees will receive their contribution along with the applicable interest. This ensures that employees are compensated for any delays in their NPS contributions, protecting their financial interests.
