Individual
Corporate
Government
Empower your employee’s retirement dreams with the power of NPS
Home > Corporate NPS
NPS perks: 4 big wins you need to know!
NPS Benefits for Employees
Dual Tax Benefit
Tax Benefit on Contribution from Salary u/s 80 CCD(2) and on Voluntary Contribution u/s 80 CCD(1B)
Flexible & Portable
Fully portable across jobs, flexible contribution and asset allocation
Low-Cost Investment
One of the lowest Fund Management Cost(FMC) across actively managed funds
Attractive Returns
Market-linked growth, managed by investment experts.
NPS Benefits for Employers
No Administration Cost burden
No cost of Joining
No Account related obligation
Corporate acts merely as facilitator
Employee manages their own account
Tax Benefit
Contribution by Employer in NPS account of the Employee is eligible for Business Expense under section 36 (1) (IV) of Income Tax Act, 1961
Unmatched Flexibility
Voluntary for employees,
Contribution amount and frequency can be tailored as per corporate requirement
Corporate NPS At A Glance
At Retirement
If accumulated corpus <= 8 lakh, 100% withdrawal allowed as lumpsum
If accumulated corpus if between 8 lakh -12 lakh, upto 6 lakh as lumpsum /SLW or a SUR(of minimum 6 years)
Tax Benefit on contribution under section 80 CCD(1): Claim a tax deduction on contributions up to ₹1.5 Lakh per year. This is available only under old tax regime
Tax benefit on voluntary contribution under section 80 CCD(1B): Get an additional deduction on voluntary contribution of upto ₹50,000. This is available only under old tax regime
Tax Benefit on contribution from salary under section 80 CCD(2): A benefit exclusively for salaried individuals where contributions are routed through the employer. This is available under both the old and new tax regime. Tax Deduction on contribution upto 14% of basic salary under new tax regime and 10% of basic salary under old tax regime (max. limit of ₹ 7.5 Lakh).
Maximum deduction allowed:
Note: Tax benefits under Section 80CCD(1B) and 80CCD(2) are mutually exclusive and can be availed at the same time.
1.Corporate Registration: Corporate submits CHO-1 along with other documents to HDFC Pension POP. Unique registration number is created for each legal entity
2.NPS Rollout: HDFC Pension Co-builds the implementation plan with the corporate. Awareness sessions conducted to educate employees about benefits of NPS
3.Employee Registration: Helpdesks organized by HDFC Pension team to onboard the employees for NPS and address queries. Establishing back-end processes like salary restructuring etc. with corporate
4.Contribution Processing: Corporate deducts the amount basis consent from the employee’s salary and remits to HDFC pension for further processing into NPS accounts
Corporate NPS Demystified
Kickstart your NPS account
Simple steps to materialize every employee’s pension dream
You'll need to choose a Central Recordkeeping Agency (CRA). CRAs handle various aspects of your account, including contributions, withdrawals, and providing account statements. Please note Corporate contributions will begin only after your employer enables your PRAN for Corporate contributions.
Let us help you with corporate NPS!
Enter your details to connect with our team.
Enrolling for Corporate NPS is easier than you think. Connect with our Corporate NPS expert pertaining to your zone. They will be more than happy to help you.
HDFC Pension is here to solve all your NPS concerns! Our knowledge center is a comprehensive one-stop shop for all your NPS queries.
The National Pension System or NPS scheme for corporates is a voluntary retirement savings and pension scheme available for self-employed and salaried individuals. It is a market-linked lifecycle fund that offers benefits as per pre-defined portfolios depending on factors such as age and risk. It is an excellent investment opportunity as it offers flexibility and portability.
In corporate NPS, corporate entities execute periodic contributions on behalf of employees. Employees get additional savings and can also have additional tax benefits.
A company looking to join corporate NPS can find a POP of choice who can assist with the process. They need to fill in the CHO-1 form, provide KYC details, and submit documents along with duly filled forms. Once the POP has verified the documents, it will be sent to the CRA for completion of registration. Once registered the company will receive a CHO number.
There is no minimum contribution limit in NPS.
Yes, employees get a tax benefit under section 80CCD(2) for all corporate contribution. Maximum tax benefit of 7.5 lakh is applicable under this section.
In corporate NPS, users can choose from multiple PFMs, Investment options (Auto or Active), and under three Asset Classes, i.e., Equity, Corporate Bonds and Government Securities.
Corporate employee can withdraw upto 4 times till superannuation/60 years with a gap of 4 years between any two withdrawals. Post 60 years, withdrawals allowed with three year gap.
Yes. The mandatory annuity requirement has been reduced to 20% for Non-Government subscribers at exit excluding PSU employees with corporate accounts.
Benefit to you:
• Higher flexibility in using your retirement corpus
• You can manage a larger portion of funds yourself
• Lower dependence on annuity rates at one point in time
Yes. Non Government Subscribers can now withdraw up to 80% of the NPS corpus as lump sum, subject to applicable conditions.
Benefit to you:
• Higher liquidity at retirement
• Ability to meet large post-retirement expenses
• More control over reinvestment decisions
Yes, 100% lump sum withdrawal is allowed if your total NPS corpus is ₹8 lakh or less, for both Government and Non-Government subscribers.
Benefit to you:
• Small-corpus subscribers are not forced into annuity
• Immediate access to entire retirement savings
• Simplified exit process
SUR allows you to withdraw your NPS corpus gradually in units over time, instead of a one-time lump sum.
Benefit to you:
• Regular cash flow after retirement
• Reduced market timing risk
• Better tax and income planning
Up to 4 partial withdrawals are now permitted before age 60, with a minimum gap of 4 years between withdrawals.
Benefit to you:
• Higher flexibility during working years
• Ability to meet life events without exiting NPS
• Retirement savings remain largely intact
Yes. If you continue NPS after 60, you can make partial withdrawals every 3 years, up to 25% of your own contribution.
Benefit to you:
• Liquidity even after retirement
• Continue investments while accessing funds when needed
At retirement or exit:
If corpus is greater than 12 Lakh
• Minimum 20% of corpus to annuity
• Up to 80% can be withdrawn as lump sum or through structured withdrawals
If corpus is below 8 Lakh
• 100% lump sum allowed
If corpus is between ₹8 lakh to ₹12 lakh
How this benefits you:
• Higher control over retirement savings
• More practical rules for mid-sized retirement corpus
• Balanced approach between liquidity and regular income. Ability to plan withdrawals based on personal needs
Yes. You can continue your NPS account up to 85 years and choose to defer both lump sum withdrawal and annuity purchase.
How this benefits you:
• Continued market participation and compounding
• Flexibility to withdraw only when funds are actually required
• Ideal for phased or delayed retirement
How this benefits you:
