Corporate NPS in new tax regime

General
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Here’s how preferences are changing under the new tax regime.

@nithin shared this on X:

In FY25, around 72% of taxpayers chose the New Tax Regime. At Zerodha, that number was over 90%.

This shift makes sense. The new tax regime trades deductions for simpler filing and lower tax rates. For many—especially younger salaried taxpayers, avoiding paperwork-heavy exemptions matters more than maximising deductions.

With most deductions removed, salaried employees are left with the ₹75,000 standard deduction and one meaningful tax-saving option: the employer contribution to NPS, commonly called Corporate NPS.

Corporate NPS allows employers to contribute up to 14% of an employee’s basic salary (up to ₹7.5 lakh a year), which is fully deductible. It can be structured from existing salary, so employers don’t have to pay extra while employees still get the tax benefit. Employers may also choose to contribute on top, but it isn’t mandatory.

We’ve partnered with PensionBox to make Corporate NPS fully digital, simplifying onboarding for HR teams and allowing employees to easily choose contribution levels and equity–debt allocation.

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How do they make money?

I got enps protean, I resisted changing to corporate nps because getting in touch with payroll is hassle and excels to fill. Can the change from individual to corporate be done online?

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Small nuance here. 7.5 lakh fully tax deductible includes both NPS and EPF and not only NPS

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