Employer’s NPS Contribution Increased To 14% For CAB Employees


The Ministry of Finance has now permitted the contribution of 14 per cent of the employer’s share in the direction of National Pension System (NPS) accounts of staff of Central Autonomous Bodies (CABs). 

 

Prime Minister Narendra Modi led Union Government had boosted up the employer’s share of contribution for NPS subscribers to 14 per cent which was at 10 per cent earlier. But, because the CABs staff aren’t Union Government Employees, the 14 per cent employer’s share rule doesn’t impose mechanically on them, acknowledged the notification dated thirty first January 2019. 

 

CABs are financially depending on grants-in-aid from the federal government. Hence, these enhancements within the employer’s contribution even have budgetary implications that warrant the approval of the Union Government. Meanwhile, it got here to note that regardless of no prior sanction from the Finance Ministry, the employer’s contribution was elevated to 14 per cent of Pay and DA in respect of staff of various CABs. The Government was knowledgeable that “such inside and suo-moto choices by the CABs/Administrative Ministries are in opposition to the Delegation of Financial Powers and equivalent to unapproved consumption.”

 

But, after trying into the difficulty, a complete of 14 per cent employer’s contribution rule has now been elevated for CABs staff. 

 

In an Office Memorandum dated August 26, 2021, the Department of Expenditure, Ministry of Finance, mentioned The Department had additional examined the difficulty and making an allowance for all of the elements, it has concluded that the notification dated 31.01.2019 could also be prolonged to staff of Central Autonomous Bodies

 

The efficient date might be April 1, 2019, as it’s for Central Government staff.” The administrative Ministry/Departments are directed to make sure that the monetary implications of the elevated share of contribution amongst autonomous our bodies are borne by the Government, in the identical approach, that the monetary implications of pay revision advantages to autonomous physique staff had been determined to be borne by the Government in accordance with the seventh CPC suggestion as enumerated.




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