What is National pension scheme (NPS) for Corporate Sctor?
The NPS Corporate Model is a win-win for both employers and employees, offering a structured, tax-efficient, and flexible retirement savings solution. By adopting NPS, companies can promote a savings culture, ensure financial security for employees,
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
National Pension Scheme for the Corporate Sector
Introduction of NPS The National Pension System (NPS) is a government-backed retirement savings scheme that provides financial security in old age. While it was initially designed for government employees, it has now been extended to the corporate sector, offering companies and employees a structured way to build a retirement corpus.
What is NPS for the Corporate Sector? NPS for the corporate sector is a voluntary scheme where employers can offer NPS as part of their employee benefits package. It allows employees to systematically save for their retirement while also providing tax benefits to both employers and employees.
Benefits of NPS for the Corporate Sector
FOR EMPLOYERS Enhanced Employee Benefits: Helps in attracting and retaining talent by providing retirement benefits. Tax Benefits: Employers get a tax deduction on contributions made towards employees' NPS accounts under Section 36(1)(iv)(a) of the Income Tax Act. Corporate Social Responsibility (CSR) Compliance: Encourages a retirement savings culture among employees.
FOR EMPLOYEES Retirement Savings: Ensures financial security post-retirement through a regulated pension scheme. Tax Benefits: Contributions up to 10% of salary (Basic + DA) by the employer are tax-exempt under Section 80CCD(2). Flexible Investments: Employees can choose between equity, corporate bonds, and government securities based on their risk appetite. Portability: Employees can continue their NPS account even if they switch jobs or move to a different sector.
How Does NPS Work for Corporates? Registration: Employers register under NPS with a Point of Presence (PoP) or aggregator. Employee Enrollment: Employees opt-in and select their investment preferences. Contributions: Both employer and employee can contribute regularly. Fund Growth: Investments are managed by Pension Fund Managers (PFMs) for long-term growth. Withdrawal: On retirement, employees can withdraw 60% tax-free, while 40% is used for an annuity (pension).
The NPS Corporate Model is a win-win for both employers and employees, offering a structured, tax-efficient, and flexible retirement savings solution. By adopting NPS, companies can promote a savings culture, ensure financial security for employees, and benefit from tax incentives. The best time to begin planning for retirement is now. Taking this step early could make your retirement years golden. Start Your NPS Journey Today!
Do you have any question? Contact - contact@utipf.co.in Visit - https://www.utipension.com/
