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The number of new corporate subscribers registering under the National Pension System (NPS) hit a 12-month high in July, as the number of corporate subscribers more than doubled to 29,333 from 14,395 in June, according to data released by the National Statistical Office (NSO) on Monday. Cumulatively 76,372 fresh subscribers joined the NPS under central, state and corporate components in July, up from 54,715 in the previous month.
Corporate subscribers are majorly voluntary subscribers and are mainly the employees of both the central and state public sector undertakings along with employees from the private sector.
Of the 29,333 subscribers under the corporate sector, three- fourths of the subscribers are over 29 years and above.
“The current spike in the new corporate subscribers could be because of new companies joining the social security scheme, and it may not be entirely due to fresh hiring in these companies, as NPS is voluntary for them. However, it's good that more companies are encouraging their employees to join the NPS and take the benefit of tax rebates and other incentives provided under it,” said an official.
Meanwhile, the number of new NPS subscribers under the central component, consisting of employees of the central government and central autonomous bodies, stood at 14,511 in July. Since the centre mandates NPS for all its new employees, experts see subscription figures at the central level as a proxy for employment generation by the public sector.
Similarly, the number of new subscribers under the state government component increased by close to 9 per cent to 32,528 in July from 29,829 in June. Since a few states like Rajasthan, Chhattisgarh, Himachal Pradesh, Jharkhand and Punjab have reverted to the Old Pension Scheme (OPS) last year, these figures cant be used as an exact metric for employment generation by the public sector.
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