NPS guidelines for staff of Central Autonomous Bodies (CABs): The Ministry of Finance has now permitted the contribution of 14% employer’s share towards NPS accounts of staff of CABs.
Through a notification dated 31st January 2019, the Central Government had enhanced the employer’s share of contribution for Central Government NPS subscribers from 10% to 14%. However, as the staff of CABs are not Central Government Employees, 14% employer’s share rule didn’t apply automatically for them.
CABs are financially dependent on grant-in-help from the Central Government. Any such enhancement in the employer’s contribution obtaining budgetary implications warrants prior approval of the Central Government. It was observed that regardless of no prior sanction from the Ministry of Finance, the employer’s contribution was enhanced to 14% of Pay and DA in respect of staff of a quantity of CABs. The Government was informed that “such internal and suo-moto decisions by the CABs/ Administrative Ministries are contrary to the Delegation of Financial Powers and tantamount to unauthorized expenditure.”
However, soon after examining the challenge, the 14% employer’s contribution rule has now been extended for staff of CABs.
“The issue has further been examined by this Department and taking into consideration all the factors, it has been decided that the notification dated 31.01.2019 may be extended to the employees of Central Autonomous Bodies,” Department of Expenditure, Ministry of Finance stated in an Office Memorandum dated 26th August 2021.
“The date of effect will be same as applicable in case of Central Government employees i.e. 01.04.2019. The administrative Ministry/ Departments are directed to ensure that while implementing the enhanced share of contribution among the autonomous bodies, the financial implications shall be borne by the Government in the same manner, as was decided to be borne while implementing the pay revision benefits to employees of autonomous bodies in terms of the 7th CPC recommendation as enumerated vide this Department’s order,” the Office Memorandum additional stated.