Employers' total contribution towards employee social security funds capped at Rs 7.5 L annually

New Delhi: The government on Saturday proposed a combined upper limit on employers' contribution towards the National Pension Scheme (NPS), superannuation fund and recognised provident fund at Rs 7.5 lakh annually for an employee.

Any contribution by employers towards these social security schemes beyond Rs 7.5 lakh per annum would be treated as perquisite of the employee and taxed accordingly.

According to the Budget 2020-21 documents, it is "proposed to provide a combined upper limit of Rs 7.5 lakh in respect of employer's contribution in a year to NPS, superannuation fund and recognised provident fund and any excess contribution is proposed to be

taxable".