Corporate NPS (Employer-Sponsored)

This category is offered by employers—private or public—as part of employee benefits like PF or superannuation.

• Contributions:
  
  • Employee contributes via salary.
  • Employer contributes up to 10–14% of salary (Basic + DA)—eligible for deduction under Section 80CCD(2), over and above the employee’s 80C/1B benefits.
• Flexibility:
  
  • Portable: you can carry the NPS account if you switch employers or the new firm doesn't offer it. You can continue contributions independently with a minimum ₹1,000 per year.
• Retirement Withdrawal:
  Same rules as Retail—up to 60% lump sum, remainder into annuity. Exit possible after 5 years of subscription; if total corpus ≤ ₹2.5 lakh, 100% can be withdrawn.

Why it’s popular:

• It combines employer support with personal contributions.
• Employer’s share is a deductible business expense.
• Employees still get their own tax breaks—making it a tax-efficient retirement vehicle.