Govt contribution to NPS will now be 14% of basic pay

NEW DELHI: In a bonanza for government employees, the Cabinet Thursday raised the government's contribution to National Pension Scheme (NPS) to 14 per cent of basic salary from the current 10 per cent, sources said.

Minimum employee contribution will, however, remain at 10 per cent.

The Cabinet also approved tax incentives under 80C of the Income Tax Act for employees' contribution to the extent of 10 per cent, they added.