Finance Minister Nirmala Sitharaman  said that the government will launch ‘NPS Vatshalya’ for providing pension contribution by parents and guardians.

Announcing Budget 2024 in Parliament, FM said, “NPS-Vatsalya, a plan for contribution by parents and guardians for minors will be started. On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account”.

Further, FM said to improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10 to 14 percent of the employee’s salary. 

Similarly, deduction of this expenditure up to 14 per cent of salary from the income of  employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided.