Your employer’s NPS contribution is one of the more overlooked tax-saving levers in a salary structure, deductible under Section 80CCD(2) separately from the 80C limit entirely. Most employees know their EPF number by heart and have never checked this one.
Government employees get a 14% deduction ceiling on employer NPS contribution regardless of which tax regime they choose. Private-sector employees get 14% only under the new tax regime, a Budget 2024 change, and 10% if they’ve stuck with the old regime. This is entirely separate from, and doesn’t reduce, your own 80C or 80CCD(1B) limits if you make voluntary NPS contributions.
Since NPS is market-linked, unlike the fixed-rate EPF, the retirement corpus projection here is illustrative based on an assumed return you can adjust, not a guaranteed outcome.
No, this tool covers only what your employer puts in on your behalf. Contributions you make yourself fall under a separate 80CCD(1B) limit of up to ₹50,000, on top of the 80C ceiling.
This depends entirely on your company’s compensation structure, some offer it as an optional CTC component you can opt into, others don’t offer it at all. Check with HR.
EPF is mandatory and offers a fixed, government-declared interest rate; NPS employer contribution (where offered) is usually optional and market-linked. Use our PF Calculator to compare the two side by side.
If it’s structured as part of your CTC, yes, it reduces your immediate take-home in exchange for the tax deduction and retirement corpus. See our CTC to In-Hand Salary Calculator for the full breakdown.
Run both scenarios through our Take-Home Salary Calculator before deciding, the higher 14% deduction under the new regime is a real factor, but it’s only one input among several when comparing regimes.
It’s a separate benefit with its own eligibility rules, our Gratuity Calculator works out that figure independently if you want the fuller retirement-benefits picture.