NPS Benefits for Salaried Employees | Corporate NPS, Tax Benefits & Company Referral

Retirement Planning • Tax Benefits • Corporate NPS • Long-Term Wealth Creation

For most salaried employees, monthly salary is used for present-day expenses, EMIs, insurance, children's education and investments. However, one important financial goal is often postponed – retirement planning.

The National Pension System (NPS) is a regulated, market-linked retirement savings system designed to help individuals build a retirement corpus gradually during their working years.

NPS can be particularly useful for salaried employees because the account can continue throughout employment and remains portable even when an employee changes job or location.

What is NPS?

NPS is a long-term retirement investment system regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Money contributed to NPS is invested through registered Pension Fund Managers across permitted asset classes depending upon the investment option selected by the subscriber.

Because NPS is market-linked, returns are not fixed or guaranteed. The value of the retirement corpus depends on contributions, investment allocation and market performance.

Why Should a Salaried Employee Consider NPS?

1. Dedicated Retirement Corpus

NPS creates a separate retirement-focused investment account. Regular monthly or yearly contributions made during employment can gradually build a substantial corpus over a long working career.

2. Power of Long-Term Compounding

When retirement investing begins early, contributions remain invested for many years. This gives the accumulated investment more time to potentially benefit from compounding.

For example, an employee investing regularly from age 30 may have significantly more time for retirement corpus creation than someone who begins retirement planning at age 45.

3. Employer Contribution Benefit

One of the most important advantages for salaried employees can arise when their employer offers Corporate NPS.

Under Corporate NPS, the company may contribute towards the employee's NPS Tier-I account as part of the employee-benefit or salary structure, subject to the company's policy.

NPS Tax Benefits for Salaried Employees

Employer Contribution – Section 80CCD(2)

Eligible employer contribution to the employee's NPS account can qualify for a separate deduction under Section 80CCD(2), subject to applicable tax provisions.

Tax Regime	Employer NPS Deduction
Old Tax Regime	Generally up to 10% of salary for non-government employees, subject to applicable provisions
New Tax Regime	Up to 14% of salary, subject to applicable provisions

Employee's Own Contribution

Under the Old Tax Regime, eligible self-contribution to NPS may qualify under Section 80CCD(1), within the overall applicable limit.

An additional deduction of up to ₹50,000 under Section 80CCD(1B) may also be available to eligible taxpayers under the Old Tax Regime.

Tax treatment depends upon the tax regime selected, salary structure and prevailing Income-tax provisions.

What is Corporate NPS?

Corporate NPS allows an organisation to offer NPS as an employee retirement benefit.

A company can decide its contribution structure according to its employment and compensation policy. Depending upon the company's policy, contribution may be:

• Employer contribution only
• Employee contribution only
• Contribution by both employer and employee
• Equal or different contribution percentages

Benefits of Corporate NPS for Employees

✔ Dedicated retirement investment

✔ Employer contribution facility

✔ Potential tax benefit on eligible employer contribution

✔ Choice of Pension Fund Manager

✔ Flexible investment allocation options

✔ Online access to NPS account

✔ Portable account across employers

✔ PRAN remains with the subscriber

✔ Long-term retirement discipline

What Happens if You Change Your Job?

One major feature of NPS is portability. An NPS account belongs to the subscriber rather than to one employer.

Therefore, when an employee moves from one company to another, the same NPS account / PRAN can generally continue, subject to the applicable NPS process.

NPS Tier-I vs Tier-II

Particular	Tier-I	Tier-II
Purpose	Primary Retirement Account	Optional Investment Account
Withdrawal	Subject to NPS withdrawal rules	More flexible withdrawals
Retirement Focus	Yes	Optional investment facility

What Happens at Retirement?

NPS is designed primarily to provide retirement income. At normal exit, the applicable NPS withdrawal rules determine how much of the accumulated pension wealth can be withdrawn as lump sum and how much is required to be used for purchasing an annuity.

Under current Corporate NPS exit provisions, ordinarily a minimum of 40% of the accumulated pension wealth is used for purchase of an annuity, while the balance may be available as lump sum, subject to applicable rules and corpus thresholds.

Who Should Consider NPS?

• Salaried employees planning for retirement
• Employees whose company provides Corporate NPS
• Employees wanting an additional retirement corpus beyond EPF
• Professionals looking for disciplined long-term investing
• Employees evaluating employer NPS tax benefits
• People who frequently change jobs and want a portable pension account

Documents Generally Required for NPS Account Opening

• PAN
• Aadhaar / KYC documents as applicable
• Mobile number
• Email ID
• Bank account details
• Photograph
• Nominee details

NPS Account Opening Assistance

Employees interested in opening an NPS account can contact BDPS Associates.

BDPS Associates can assist with the onboarding process and coordinate account opening through the applicable authorised NPS channel / intermediary.

Assistance can include:

• NPS onboarding guidance
• Documentation assistance
• Corporate NPS information
• Basic guidance regarding contribution options
• Coordination for company-level Corporate NPS discussion

Refer Your Company for Corporate NPS

Does your company currently not provide Corporate NPS?

You can introduce your company's HR, Finance, Payroll or Management Team to BDPS Associates for a Corporate NPS discussion.

If your referral is accepted and the referred organisation successfully completes Corporate NPS onboarding through the applicable channel, the eligible referrer may receive a Referral Reward from BDPS Associates, subject to the referral programme terms.

Who Can Refer?

• Company employee
• HR professional
• Accounts / Finance employee
• Payroll professional
• Consultant
• Business associate
• Professional contact

Basic Referral Conditions

• The company referral should be genuine.
• The referred company should be a new Corporate NPS lead.
• The contact person should preferably be from HR, Finance, Payroll or Management.
• Referral submission itself does not guarantee payment.
• Reward becomes eligible only after successful Corporate NPS onboarding and satisfaction of the referral terms.
• Referral reward amount may depend on the size and nature of the corporate onboarding.
• Applicable taxes / TDS, if any, may be deducted as required by law.

Corporate NPS Referral – Undertaking

By submitting a company referral, the referrer confirms that:

1. The information provided in the referral form is true and correct to the best of his/her knowledge.
2. The referrer has a legitimate business or professional connection with the referred organisation or contact person.
3. The referral has been made voluntarily and without any misleading representation regarding NPS investment returns or tax benefits.
4. The referrer understands that NPS is a market-linked retirement product and no guaranteed investment return is being promised.
5. The referred organisation is free to independently decide whether to implement Corporate NPS.
6. Submission of a referral does not automatically create an entitlement to a referral reward.
7. Referral reward, if applicable, will become payable only according to BDPS Associates' referral eligibility conditions and after successful corporate onboarding.
8. The referral reward amount, payment timeline and applicable tax deductions may vary depending upon the transaction and programme terms.

Interested in NPS?

For NPS Account Opening Assistance or Corporate NPS Referral

BDPS Associates

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Call / WhatsApp: 9326347505

NPS Enquiry / Corporate Referral

Your Name Mobile Number Requirement Open Individual NPS Account Corporate NPS for My Company I Want to Refer My Company Employer NPS Tax Benefit Information Existing NPS Account Guidance Need NPS Consultation Company Name Company Contact / HR Name Approx. Number of Employees Not Applicable Below 25 25 – 50 51 – 100 101 – 250 251 – 500 501 – 1,000 Above 1,000 Message

I confirm that the information provided above is correct to the best of my knowledge. If this is a corporate referral, I understand that referral reward eligibility is subject to successful onboarding and applicable BDPS Associates referral programme terms.

Disclaimer: NPS is a market-linked retirement product regulated by PFRDA. Returns are not guaranteed and depend upon market performance and the investment option selected. Tax benefits are subject to prevailing tax laws, the subscriber's tax regime, salary structure and eligibility. BDPS Associates provides assistance and coordination for NPS-related onboarding and Corporate NPS enquiries through applicable authorised channels/intermediaries. The referral programme is a promotional programme of BDPS Associates. Referral submission does not guarantee payment of any reward. Terms, eligibility, payment amount and applicable taxes may vary.