Which of the following changes was proposed in the Union Budget 2024 to benefit employees’ social security through the National Pension Scheme (NPS)?

Correct option is D

The correct answer is (d) Increase employer contribution from 10% to 14%.
• In the Union Budget 2024, the government proposed increasing the employer’s contribution to NPS from 10% to 14% of salary for private sector employees.
• This change was aimed at enhancing social security and retirement savings for salaried individuals.
Information Booster:
• Earlier, the 14% employer contribution benefit was available mainly to government employees.
• Union Budget 2024 extended this benefit to private sector employees as well.
• Employer contributions up to 14% of basic salary + DA are eligible for tax deduction under Section 80CCD(2).
Additional Knowledge:
• The National Pension Scheme (NPS) is a long-term retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority).
• NPS provides a mix of equity, corporate bonds, and government securities, allowing market-linked returns.
• The move aligns with the government’s focus on pension coverage, formal employment, and long-term financial security.
• NPS is open to Indian citizens aged 18–70 years, including private sector and self-employed individuals.