INCOME TAX24 Sept 2026
Corporate NPS: why India needs to flip the retirement savings default | Mint
Corporate NPS, or National Pension System, is used by only 5–6% of eligible private-sector staff, even though over 29,000 companies have enrolled. Mint argues the fix is simple: make enrolment automatic, with an easy opt-out. Employer contributions up to 14% of basic salary stay tax-free within the ₹7.5-lakh PF and superannuation cap. Check whether your employer offers it.
Key Statutory Highlights
- Only about 5–6% of eligible private-sector employees join corporate NPS, even though more than 29,000 companies have enrolled for the scheme.
- Under Section 80CCD(2), referenced as Section 124 in the IT Act 2025, employees in the new tax regime can get employer NPS contributions up to 14% of basic salary tax-free, within the combined ₹7.5-lakh annual cap covering PF and superannuation.
- The EPFO 2026 notification allows employees to make non-matching contributions and decide how much to contribute beyond the mandatory ₹21,600 per year.
Actionable Advice for Taxpayers / Founders:Ask your HR or payroll team whether corporate NPS is available to you and what employer contribution applies. Compare that with your current PF and take-home pay before deciding, since individual eligibility and tax treatment can vary.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: