Employees of Muthoot Finance would be covered under the national pension scheme and employee contribution to NPS will be linked with a contribution by the gold loan company
Gold loan company Muthoot Finance Ltd has launched a pension scheme for its employees under the National Pension System (NPS).
"For the employees of the company this will be a distinctive social security benefit and a unique staff welfare scheme as the employee contribution to NPS will be linked with a contribution by the company. Muthoot Finance in its capacity as point of presence (POP) will absorb certain applicable POP related transaction charges," the company said in a release.
Pension Fund Regulatory Development Authority (PFRDA) had launched NPS, a social security measure of the union government. The long-term retirement savings plan for the Indian citizens in the 18-60 age groups has the provision for regular pension at the end of the tenure.
While Central and State government employees have to subscribe it mandatorily, it is optional for others. The minimum annual contribution is Rs6,000, which can be paid at once or in instalments of at least Rs500.
NPS are not exactly the best option for retirement savings. NPS returns will be destroyed by tax at the time of withdrawal. The only parameter on which NPS scores is the feature wherein the employer makes contribution to NPS, which can happen without increase in CTC (cost to company). There is a separate tax deduction under a new Section 80CCD(2), which helps employees save on taxes. The best part is that such contributions will not be included in the Rs1 lakh limit exemptions that you can avail of under Section 80C and the employer can show it as deduction from business income under Section 36 I (IV) A for his contribution. This is the feature Muthoot is using.
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If my understanding is not correct, will someone clarify?
Even on holidays they need to be on duty...off course (was surprised to see them off on easter and Xmas)
This is called slavery at its best, private banks circus was exposed by CobraPost, what about - Muthoot (and other - jokes in Kerala - if you have colored money inform Muthoot (Pappachan) next day a full fledged branch will be opened just adjacent to the customer home.
That's called Customer Service...