New Delhi, Dec 10: Cabinet approves the proposal for streamlining the National Pension System (NPS).
Under #NationalPensionScheme mandatory contribution by the Central Government for its employees covered under NPS Tier-I increased from existing 10% to 14%.Tax exemption limit for lump sum withdrawal on exit enhanced to 60%: FM @arunjaitley
Finance Minister Arun Jaitley said while addressing a press conference in New Delhi elaborated about the decision taken by the cabinet. He said,
Employees who are in service after 1-1-2004, are eligible for getting new pension scheme and in this new pension scheme Some changes have been made in the larger interest of the employee. According to the scheme earlier, 10% was contributed by Employee himself and 10% by the government. That means employee get 20% corpus, concern person gets post-retirement basis.