New NPS contribution guidelines for Central govt employees issued: All you need to know

The Memorandum recapitulated previously in place provisions such as contributing 10% of the salary to the NPS, which is subject to periodic review.

However, the memorandum further specified that employees under periods of suspension will have a choice in regards to paying the contribution. If at all at a later date the abeyance is deemed as duty, then the contributions during the period will be recalculated on the basis of the employees’ salary at the time.

Further, any inconsistency in contributions will be credited to the individual pension account along with the applicable interest.

Those employees who are on deputation to other departments or organisations will continue to pay contributions as if they have not been transferred at all.

As per the guidelines, employees on probation will also have to make the contributions obligatorily to their pension accounts. However, those employees who are on unpaid leave or absent without pay will not be required to make the contributions.

In case there has been a delay in crediting the contributions, the affected employees will receive their contribution with added interest.

The DoPPW has urged all ministries and departments to communicate these provisions to the employees who look after the NPS matter.