At present, the employer’s provident fund contribution, for the worker’s profit, is deductible as much as 12% of the wage (primary + DA), capped at Rs 7.5 lakh, and the curiosity on this contribution is tax-exempt.Nevertheless, beneath the Nationwide Pension Scheme, the employer’s contribution in direction of NPS is simply exempt as much as 10% of the wage (primary + DA).
“We now have requested to extend it to 12% to align it with EPFO. Our aim is to make it 14% as a result of, within the case of presidency workers, contributions as much as 14% are tax-free,” stated Deepak Mohanty, chairman of PFRDA.
Mohanty was in Mumbai to fulfill with distributors and different stakeholders within the NPS to broaden the subscriber base. He additionally introduced that the corpus beneath the NPS has crossed Rs 11 lakh crore.
He talked about that the NPS has outperformed all fairness benchmarks, with fairness funds producing returns of 24.2% over one 12 months, 18.4% over three years, and 13.3% since inception. The central authorities scheme, a mixture of debt and a small fairness portion, has yielded 9.46% since inception.
Regardless of the scheme’s efficiency and the benefit of investing, consciousness relating to it and the flexibleness it supplies by means of systematic withdrawals stays low. Within the personal sector, the overall subscriber base is simply 51 lakh, with belongings beneath administration of slightly over Rs 2 lakh crore as of December 23.
“We aimed to draw 13 lakh subscribers throughout the present monetary 12 months. We now have added round 5.3 lakh subscribers thus far and are specializing in increasing consciousness by means of campaigns, distributors, and social media,” stated Mohanty.
