Empowering India

Empowering India’s Working Class & Government Employees: Insights, Resources, and Community.

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Here are the two important calclators for our employees.

In NPS, a government employee contributes towards pension from monthly salary along with matching contribution from the employer.
Nirmala Sitharaman, Finance Minister of India, in the Union budget for 2022 has brought equivalence between the state and central government employees regarding their contribution of an employer to NPS. Accordingly, the contribution towards NPS for state government employees has been raised from 10 % to 14%. The state government will also contribute 14%, matching an employee’s contribution to this account.
Some State Governments and Union territories have adopted NPS architecture with different dates and implemented NPS mandatorily through Gazette Notifications for their employees joining on or after date of adoption of NPS opted by respective State government.
Partial withdrawal of up to 25% of the offerings done by the NPS Tier-1 account holder is tax-exempt.
Lump sum withdrawal up to 60% of total pension amount during superannuation is free from taxes.
PRAN (Permanent Retirement Account Number) is to be used by government employees for accessing their NPS accounts.
For government employees, tax benefit u/s 80C is also offered on Tier -2 NPS contribution within the upper capital limit of Rs.1,50,000 with a 3-year lock-in period.

Gratuity is the payment made by an employer to an employee as a reward for services rendered to the company or government.
Under the Gratuity Act, the maximum gratuity amount is capped at Rs 20 lakh. Any amount exceeding this limit is classified as ex-gratia.
For employees whose employers are not covered under the Gratuity Act, the gratuity is calculated based on half a month’s salary for each completed year of service.

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