National Pension Scheme (NPS) is a Government program under The National Pension System of India. The scheme looks forward to securing employees post retirement. The Government of India adopted the system from 1st January 2004. Under the NPS, every candidate has to acquire PRAN (permanent retirement account number) for the allotment of eligibility.
In the year 2009, The Government of India made National Pension Scheme, a retirement saving scheme for all government as well as private sector employees.
The functioning of NPS
Case on National Pension Scheme
Giriraj Singh, is the HR head of a fast-growing Private Limited firm. He has suggested the NPS as the permanent retirement solution for the employees of the organization as, it has the potential to reduce the burden of contribution to employee’s PF on the firm, and offers higher tax benefits for the contribution years.
This feature gives tremendous growth advantage to the investors. Furthermore, National Pension Scheme will make employees stay longer, as the rules may be introduced for the employees to spend at least five years with the employer in order to receive tax-free contribution of the employer.
Overall, NPS is potentially the best choice for them as employer and for their hard-working employees’ retirement.