look news india
Old Pension: After the announcement of implementation of old pension by the governments in many states including Himachal Pradesh, the debate has started once again regarding new and old pension.
Employees constantly talk about re-implementing the old pension citing its benefits, while governments say that the new pension is more effective.
Even though the old pension is being said to be in the interest of the employees, but do you know that its implementation will affect the take home salary of the employees.
When we talked to investment advisor Manoj Jain about this, he told that there is a lot of difference in the rules of new and old pension scheme in terms of contribution.
In such a situation, there will be a lot of difference between the salary coming in the hands of the employees after the deduction being made under NPS and the salary coming after the implementation of the old pension. State governments deduct old pension as per the slab of the employees, which may be more than NPS.
What is the rule of deduction in NPS?
The rule for deduction in pension fund under NPS is that 10 percent amount is deducted from the employee's basic and DA and added to it. At the same time, 14 percent amount is deposited by the government in this NPS account.
That means the total amount deposited in the fund is 24 percent of the employee's basic and DA, but the employee's contribution in this is only 10 percent, while the employer's contribution is 14 percent.
how much money will come into hand
If we understand this from figures, then suppose the salary of an employee including basic and DA is Rs 50 thousand. In such a situation, there will be a deduction of 10 percent (5 thousand rupees) in NPS from his account.
And you will get a salary of Rs 45 thousand. During this period, 14 percent (Rs 7,000) of the employee's basic and DA will be deposited in his fund by the government.
What is the rule for old pension deduction?
GPF account of employees is opened in the form of old pension. In this, the amount is deducted from the salary according to their salary structure i.e. slab.
Although the minimum deduction in GPF is 6 percent of basic salary and DA, but the employee can contribute any amount as per his wish. This can also be 100 percent of his salary. Fixed interest will be given on this entire amount and a lump sum amount will be given to the employees on retirement.
How much will be the take home salary now?
If seen from the point of view of old pension i.e. GPF, if the slab of an employee is Rs 50 thousand, then at least 6 percent (Rs 3,000) will be deducted from his salary. In such a situation, his take home salary will be Rs 47 thousand which will be more than the current rule of NPS. Although,
If the employee wishes, he can increase the amount of deduction and he will also get more retirement amount. Rajasthan government has recently implemented the old pension scheme and money is being deducted from the salaries of employees under the slab in GPF. In such a situation, the take home salary in their hands has increased.