Corporate NPS — Empowering Employers to Invest in Their People

A company's greatest asset is its workforce, and securing the financial future of employees is one of the most meaningful ways an organisation can express that belief. Corporate NPS is a structured, employer-facilitated retirement benefit plan that allows companies of all sizes to offer NPS to their employees as part of a comprehensive employee benefits package.

What Is Corporate NPS?

Corporate NPS enables any registered company, institution, or organisation to enrol its employees under the National Pension System through a centralized and streamlined process. Employees get access to a government-regulated, market-linked retirement savings plan, while employers benefit from significant tax advantages on their contributions.

How Corporate NPS Works

The employer registers with a Point of Presence (PoP) to set up a Corporate NPS model.
Employees are enrolled and assigned individual PRANs.
Both the employer and employee can contribute to the employee's NPS Tier I account.
Contributions are pooled and invested by the chosen Pension Fund Manager (PFM) across asset classes.

Benefits for Employees

Long-term financial security Regular, disciplined accumulation of a retirement corpus throughout the working career.
Tax advantages Employer contributions are eligible for tax deduction under Section 80CCD(2) — over and above the standard ₹1.5 lakh limit. Employee contributions qualify under Sections 80CCD(1) and 80CCD(1B).
Investment flexibility Employees can choose their preferred PFM and investment allocation strategy (Active or Auto Choice).
Portability The PRAN travels with the employee across jobs. If an employee changes employers, the NPS account continues uninterrupted.
Transparency Subscribers can track their NPS corpus in real time through the NSDL/KFINTECH CRA portals.

Benefits for Employers

Talent Retention: Offering NPS signals a long-term commitment to employee well-being, helping organizations attract and retain skilled talent.
Tax Deduction on Contributions: Employer contributions to employees' NPS accounts are fully deductible as a business expense under Section 36(1)(iv-a) of the Income Tax Act, subject to applicable limits.
Low Administrative Burden: The centralized NPS framework simplifies payroll deductions, contribution uploads, and compliance management.
Reputation Building: Organizations offering NPS showcase social responsibility and a commitment to securing their employees' financial future.

Eligibility

Any company — private or public — registered in India can adopt the Corporate NPS model. There is no minimum employee count requirement, making it accessible to startups and large corporations alike.

Corporate NPS Scheme FAQs

Corporate NPS is an employer-facilitated retirement model where registered companies provide NPS to their employees as part of their corporate benefits package.

Employer contributions up to 14% of Basic + DA are tax-deductible as business expenses under Section 36(1)(iv)(a) of the Income Tax Act.

Employees can claim deductions on employer contributions under Section 80CCD(2) up to 14% of Basic + DA under the New Tax Regime, over and above Section 80C limits.

Yes, the PRAN is fully portable across different employers, job locations, or can be converted to an Individual All-Citizen account.

No, Corporate NPS is open to corporate entities of all sizes, including start-ups, MSMEs, and public sector undertakings.

Depending on corporate policy, the employer can establish a standardized asset choice for all employees, or allow individual employees to select their own Preferred Pension Fund Manager and Active/Auto Choice allocations.

Yes, Corporate NPS can be implemented alongside existing statutory Provident Fund (EPF) and corporate superannuation plans.

The corporate entity deducts employee contributions directly via monthly payroll and remits them along with any co-contributions through the CRA platform via Alankit.

No, Alankit handles end-to-end onboarding, PRAN generation, bulk contribution uploads, and compliance servicing to minimize administrative effort.

Public and private limited companies, sole proprietorships, partnerships, LLPs, societies, trusts, and PSUs registered in India are eligible.

Corporate NPS

Corporate NPS — Empowering Employers to Invest in Their People

What Is Corporate NPS?

How Corporate NPS Works

Benefits for Employees

Benefits for Employers

Eligibility

Corporate NPS Scheme FAQs

Q1: What is Corporate NPS?

Q2: What tax savings do corporate employers get by offering NPS?

Q3: How do employees benefit tax-wise under Corporate NPS?

Q4: Can an employee transfer their Corporate NPS account if they change jobs?

Q5: Is there a minimum employee headcount required for a company to register?

Q6: Who controls asset allocation under Corporate NPS—the employer or employee?

Q7: Can Corporate NPS coexist alongside Provident Fund (EPF) and Superannuation?

Q8: How are contributions deposited under Corporate NPS?

Q9: Does Corporate NPS increase administrative burden on HR and Finance teams?

Q10: What entity types are eligible to register under Corporate NPS?

Ready to take the next step?

Message from MD

— Ankit Agarwal, Managing Director, Alankit