● Corporate NPS Scheme
Strengthen Employee Financial Security with Corporate NPS
Offer your employees a structured retirement savings solution. Employers contribute towards their pension corpus while unlocking significant tax advantages under the Income Tax Act.
CORPORATE NPS
SAVINGS PASSBOOK
SAVINGS PASSBOOK
EST. ANNUAL
Total annual employer contribution
₹0
Deductible as business expense (36(1)(iva))
₹0
Employees' collective tax exemption*
₹0
*Illustrative, assuming a 30% average employee tax slab on the exempted employer contribution. Actual outcomes depend on each employee's regime and slab — please confirm figures with a tax advisor before finalising your proposal.
● Overview
What is Corporate NPS?
The Pension Fund Regulatory and Development Authority of India (PFRDA) has introduced the Corporate NPS model, enabling organisations to offer National Pension System (NPS) investment opportunities to their employees as part of the employer-employee relationship framework. Under the Corporate NPS Scheme, both employers and employees contribute towards an employee’s retirement corpus, helping build long-term financial security while unlocking valuable tax benefits for both parties. Simple to implement, transparent, and cost-effective, Corporate NPS allows businesses to strengthen their employee benefits programme without the need to establish a separate trust. It also helps organisations attract and retain talent, enhance employee financial well-being, and create a future-ready workforce through a structured retirement savings solution.
PFRDA regulated
Governed by India's official pension regulator.
No separate trust needed
Launch the scheme without added administrative overhead.
Attract & retain talent
Strengthen your benefits programme and build a future-ready workforce.
● Tax Benefits
Corporate NPS Tax Benefits
Corporate NPS offers attractive tax advantages for both employers and employees:
0
%
Employer Contribution
Employers can contribute up to 14% of an employee’s Basic Salary + Dearness Allowance (DA) and claim tax benefits under Section 80CCD(2) of the Income Tax Act, subject to the overall prescribed limits on employer contributions.
Sec 80CCD(2)
0
K
Additional Employee Benefit
Employees can claim an additional deduction of up to ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 lakh limit available under Section 80C.
Sec 80CCD(1B)
0
%
Employee Contribution
Employees can also contribute up to 10% of their Basic Salary + DA and claim tax benefits under Section 80CCD(1), subject to the applicable limits under the Income Tax Act.
Sec 80CCD(1)
● Employer Contributions
Corporate NPS Tax Benefit for Employer Contributions
Under Section 80CCD(2) of the Income Tax Act, employer contributions to an employee’s Corporate NPS account are eligible for tax deductions, subject to the prescribed limits.
Old Tax Regime
10%
Employer contributions of up to 10% of an employee’s Basic Salary + Dearness Allowance (DA) qualify for tax benefits under Section 80CCD(2).
New Tax Regime
14%
Employer contributions of up to 14% of an employee’s Basic Salary + Dearness Allowance (DA) qualify for tax benefits under Section 80CCD(2).
Corporate NPS Tax Benefit Limit
₹7.5L
Combined Annual Cap
The Corporate NPS tax benefit limit is subject to an overall annual cap of ₹7.5 lakh, which is the combined limit for employer contributions towards:
- National Pension System (NPS)
- Employees' Provident Fund (EPF)
- Superannuation Fund (SA)
Any contribution within the applicable limits is eligible for tax deduction as per the prevailing provisions of the Income Tax Act.
● For Employees
Corporate NPS Tax Benefits for Employees
The Corporate NPS Scheme offers significant tax-saving opportunities, helping employees build a retirement corpus while reducing their taxable income. Eligible employee contributions qualify for tax deductions under the Income Tax Act, making Corporate NPS one of the most tax-efficient retirement planning solutions for salaried individuals.
Corporate NPS Tax Benefits on Employee Contributions
Employees contributing to their Corporate NPS account can claim tax deductions under the following sections of the Income Tax Act:
- Section 80CCD(1): Employees can contribute up to 10% of their Basic Salary + Dearness Allowance (DA) and claim a tax deduction within the overall ₹1.5 lakh limit available under Section 80CCE.
- Section 80CCD(1B): Employees can claim an additional tax deduction of up to ₹50,000, over and above the ₹1.5 lakh limit under Section 80CCE, by making voluntary contributions to their NPS account.
Corporate NPS Tax Exemption
The tax deductions available under Section 80CCD(1) and Section 80CCD(1B) can be claimed under the Old Tax Regime, subject to the applicable provisions of the Income Tax Act. These deductions help employees lower their taxable income while building a larger retirement corpus through disciplined, long-term investments.
Note: Deductions under Section 80CCD(1) and 80CCD(1B) can be claimed under the Old Tax Regime, subject to applicable provisions of the Income Tax Act.
● Plan Ahead
Corporate NPS Calculator
Estimate your retirement corpus, monthly pension, and potential tax savings based on salary, contribution amount, tenure, and expected returns — before you decide.
Monthly contribution ₹10,000
Investment tenure 25 Years
Expected return (p.a.) 10%
Est. retirement corpus ₹1.3 Cr
● Eligibility
Eligibility Criteria for Corporate NPS
The Corporate NPS Scheme is open to a wide range of organizations that wish to offer retirement benefits to their employees. Employers can register under the scheme if they are a legally recognized entity and meet the eligibility criteria prescribed by PFRDA.
Eligible organisations
The following entities are eligible to register for the Corporate NPS Scheme:
- Companies registered under the Companies Act
- Registered Limited Liability Partnerships (LLPs)
- Registered Partnership Firms
- Proprietorship concerns
- Entities registered under Co-operative Acts
- Trusts and Societies
- State & Central Public Sector Enterprises
- Central Public Sector Enterprises (CPSEs)
- Any other legally incorporated enterprise or firm recognized under applicable laws
Employee Eligibility
Employees of eligible organizations can enroll in Corporate NPS if they meet the following criteria:
- Are employed with an organization registered under the Corporate NPS Scheme.
- Complete the required KYC and onboarding formalities.
- Meet the eligibility norms prescribed by PFRDA at the time of registration.
● Getting Started
How To Open a Corporate NPS Account
Opening a Corporate NPS account is a simple and paperless process. Once your employer is registered under the Corporate NPS Scheme, employees can complete the registration online using Aadhaar or PAN, complete KYC, and start contributing towards their retirement savings.
Step-by-Step Corporate NPS Account Opening Process
1
Get the registration link
Request the Corporate NPS registration link from your employer’s HR department or designated Nodal Officer/Point of Presence (PoP).
2
Complete KYC verification
Authenticate your identity using Aadhaar or PAN. Aadhaar-based verification through DigiLocker enables faster and seamless KYC.
3
Submit Employee Details
Enter your company name, employee ID, date of joining, and upload the required documents such as PAN card, address proof, and bank details.
4
Choose Your Pension Fund Manager (PFM)
Select a PFRDA-approved Pension Fund Manager and choose your preferred investment option—Active Choice or Auto Choice.
5
Make your initial contribution
Complete the minimum initial contribution (generally ₹1,000) to activate your Tier-I Corporate NPS account.
6
Employer verification & PRAN generation
Your employer will verify your employment details. Once approved, your Permanent Retirement Account Number (PRAN) is generated, and your Corporate NPS account becomes active.
● For Employers
Corporate NPS Onboarding Process
1
Consultation & requirement gathering
Understand your organization’s requirements, employee strength, and contribution structure to recommend the most suitable Corporate NPS solution.
2
Employer registration
Complete the necessary documentation and register your organization under the Corporate NPS Scheme.
3
Employee awareness session
Conduct employee education sessions or webinars to explain the benefits of Corporate NPS, tax savings, and the enrollment process.
4
Employee KYC & Account Opening
Assist employees with KYC verification, online registration, and Corporate NPS account activation
5
Employer contribution setup
Configure employer contribution percentages and payroll integration based on your organization’s compensation policy.
6
Dashboard Activation & First Contribution
Activate the employer dashboard for contribution management, reporting, and portfolio tracking. Once activated, the first contribution can be processed as per the agreed schedule.
● FAQs
Frequently Asked Questions
What is the difference between NPS and Corporate NPS?
NPS is an individual retirement savings scheme that anyone eligible can open independently. Corporate NPS, on the other hand, is offered by an employer as part of an employee benefits program. Under the Corporate NPS Scheme, both the employer and employee can contribute to the same NPS account, providing additional tax benefits and helping employees build a larger retirement corpus.
Is Corporate NPS worth it?
Yes. Corporate NPS is a valuable retirement planning solution for both employers and employees. Employees benefit from employer contributions, long-term wealth creation, and additional tax savings, while employers can optimize their compensation structure, improve employee retention, and claim eligible tax deductions on employer contributions.
Is Corporate NPS part of CTC?
Yes. Many organizations include the employer’s NPS contribution as part of the employee’s Cost to Company (CTC). Depending on the company’s compensation policy, the contribution may be structured within or over and above the CTC, while remaining eligible for applicable tax benefits.
Who is eligible for Corporate NPS?
Employees working for organizations registered under the Corporate NPS Scheme can enroll in Corporate NPS. Eligible organizations include companies registered under the Companies Act, LLPs, partnership firms, proprietorships, trusts, societies, co-operative societies, and public sector enterprises, subject to PFRDA guidelines.
Can I withdraw my Corporate NPS?
Yes. Withdrawals from Corporate NPS are permitted as per the PFRDA Exit and Withdrawal Regulations. The withdrawal rules depend on factors such as the subscriber’s age, reason for exit, and accumulated corpus. Partial withdrawals and retirement withdrawals are available subject to the prevailing regulations.
Is Corporate NPS tax-free in the New Tax Regime?
Employer contributions to Corporate NPS continue to be eligible for tax benefits under Section 80CCD(2) in the New Tax Regime, subject to the applicable limits. However, deductions available under Sections 80CCD(1) and 80CCD(1B) for employee self-contributions are generally available only under the Old Tax Regime.
How do I convert an Individual NPS account to Corporate NPS?
If your employer has adopted the Corporate NPS Scheme, you can link your existing PRAN to your employer instead of opening a new NPS account. The process generally involves:
- Inform your HR or Nodal Officer that you already have an NPS account.
- Submit the required migration or sector-shifting request along with your existing PRAN.
- Complete any additional KYC or documentation, if required.
- Once the request is approved, your existing NPS account will be mapped to your employer under the Corporate NPS model, and future employer contributions can begin.
Your PRAN remains the same, ensuring continuity of your retirement savings and investment history.
● Next Step
Get a proposal built around your headcount.
Share a few details and our corporate desk will send a rollout plan and contribution-slab options sized to your organisation within 2 business days.
Ready to Offer Corporate NPS to Your Employees?
Join forward-thinking organizations that are strengthening employee financial security while optimizing tax efficiency. Our specialists will guide you through every step of the implementation process.
