The latest data of retirement fund body EPFO showed that the total number of new contributing subscribers under NPS during June 2024 is 64,799 which was 79,080 during the month of May 2024. A report by Ministry of Statistics & Programme Implementation (Mospi) stated that around 30.7% of the new members in June 2024 were female, whereas 69.3% were male. During the year 2023-24, total number of new contributing subscribers under NPS was 9,73,428
Urban unemployment declined marginally to 6.6% in the first quarter of FY25 from 6.7% in the previous quarter, the periodic labour force survey data released by the ministry earlier this month said.
Overall, women found more jobs as compared to men. The share of women in EPF net additions was at 29 percent in June against 26 percent in the year-ago period. Similarly, in ESIC, the share grew to 21.8 percent from 21 percent
This data is part of the payroll data provided is considered provisional due to the continuous process of updating employee records. EPFO has been regularly releasing payroll data starting from April 2018, encompassing information from September 2017 onwards. This monthly payroll data includes new members who have recently joined EPFO using Aadhaar-validated Universal Account Numbers (UAN), along with existing members who may have left and later rejoined, allowing for the calculation of the net monthly payroll.
About National Pension Scheme
Launched in 2004, the National Pension System (NPS) serves as a robust investment avenue for individuals aiming to build a substantial retirement fund, complemented by the prospect of receiving a pension thereafter. It not only facilitates financial independence in your post-retirement years but also operates as an efficient mechanism for income tax savings.
It was initially introduced for government employees and later extended to all Indian citizens, including self-employed professionals and those in the unorganised sector, on a voluntary basis starting from May 1, 2009.
Consistently investing in NPS can help build a substantial retirement corpus over time. It is important to note that NPS taxation rules vary between the Old Tax Regime and the New Tax Regime.
Under the Old Tax Regime, NPS provides tax benefits under three sections of the Income Tax Act, 1961. Contributions made to NPS are eligible for tax deductions under Section 80C, up to a maximum amount of Rs 1.5 lakh. Additionally, an extra tax deduction of Rs 50,000 is available under Section 80CCD (1B).
For individuals with a corporate NPS, 10% of the basic salary contributed by the employer to the NPS is eligible for deduction under Section 80CCD (2). This can further enhance the tax benefits associated with investing in the National Pension Scheme.
National Pension System (NPS) Additions under New Tax Regime (Budget 2024-25)
> Employees opting for the New Tax Regime are now qualified for a higher deduction of up to 14% of their basic salary for the contribution made to the NPS by the employer on behalf of the employee as per the provisions of Section 80CCD(2) in the Income Tax Act.
> The Union Budget for the fiscal year 2024 introduced a notable escalation in the deduction permitted on employers’ contributions to employees’ NPS.
> The deduction has been elevated from 10% to 14% of the employees’ basic salary. It is noteworthy that this augmented deduction rate will be applicable to both public-sector corporations and private-sector entities under the novel regime.
> Under the Income Tax Act, government employees are entitled to a 14% deduction on their National Pension System (NPS) contributions. This increased deduction is specified in Section 80CCD(2) and is applicable in both the current tax system and the newly streamlined tax regimes. It is important to note that the elevated deduction rate of 14% is exclusive to the recently introduced simplified tax regime.