1 min read.Updated: 25 Aug 2021, 03:41 PM ISTLivemint
After the raise in PSBs contribution for employees under NPS, the minimum employees' contribution will remain at 10 per cent
The Government of India (GoI) has increased recruiters monthly contribution for the employees under New Pension Scheme (NPS). The Secretary, Depart of Financial Services (DFS) Debasish Panda informed about the development in Mumbai while speaking at the meeting to review the financial performance of the lenders. The DFS Secretary said that the PSB contribution for employees pension under NPs has been raised from existing 10 per cent to 14 per cent. However, after the raise in PSBs contribution for employees under NPS, the minimum employees' contribution will remain at 10 per cent.
"PSBs’ contribution for employee pensions under NPS hiked to 14 per cent from 10 per cent earlier," said Secretary DFS.
After this announcement, PSB employees' NPS rule will become at par with the central government employees pension under NPS. For central government employees pension under NPS, the government contribution is at 14 per cent while employees' minimum contribution stands at 10 per cent. Now, same NPS benefit has been bestowed on the PSB employees. So, in the long-term, PSB employees will now have more pension fund at the time of retirement as an additional 4 per cent will be contributed by the PSBs for its employees’ pension under NPS.
The DFS Secretary Debashish Panda also made an announcement that family members of the deceased PSB bankers will now get 30 per cent of last drawn salary. He went on to add that PSBs are now raising their own resources after gaining investor confidence.
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