An overview of the National Pension System

The National Pension System (NPS) is a Government of India initiative to extend pension benefits to all Indian citizens. It is mandatory for central government employees and the employees of some state governments to invest in the NPS. As per a government directive, private-sector employees are now given a choice between the Employees' Provident Fund Organisation (EPFO) and the NPS. The employee contribution is generally 10 per cent of the basic salary and DA, with a matching contribution made by the employer. However, in the case of government employees, the employer's contribution has been raised to 14 per cent.

This article was originally published on October 21, 2021.