Let’s talk about something that sounds boring but is actually super rewarding—employer contributions to your Corporate NPS (CNPS). If you’re wondering what your company can pitch into your retirement fund and how much they’re allowed to, you’re in the right place. Stick around, and we’ll break it down in a way that’s way easier to digest than your HR policy document.
## First things first: What is CNPS?
CNPS stands for Corporate National Pension Scheme—a retirement savings option tailored specifically for salaried employees. It’s part of the broader NPS (National Pension System), but this one’s got a twist: your employer gets involved.
And no, this isn’t some HR gimmick. CNPS is actually one of the smartest, tax-saving, wealth-building benefits your company can offer. If your employer has tied up with [PensionBox](https://www.pensionbox.in), you’ve already got one foot into a better financial future.
## So, how much can your employer contribute?
This is where things get interesting. Under Section 80CCD(2) of the Income Tax Act, your employer can contribute up to 10% of your basic salary plus dearness allowance (DA) to your NPS account—without it being taxed in your hands.
Now, if you work for a central government body, the limit goes up to 14%, but for most corporate employees, the magic number is 10%.
## Is there a money cap?
Yes and no. The contribution itself doesn’t have an upper monetary limit, but the tax exemption does. From FY 2020-21 onwards, the total employer contribution to NPS, superannuation, and EPF is tax-free only up to ₹7.5 lakh per year combined. Anything above that is taxed as a perquisite.
So while your employer can contribute more, the extra might get taxed. Still, free retirement money? We’ll take it.
## Can YOU contribute more?
Of course! CNPS isn’t just about what your employer gives. You can add to your NPS account too—either in Tier 1 (locked till retirement) or Tier 2 (more flexible). Contributions under Tier 1 qualify for tax deductions under Section 80CCD(1)—up to ₹1.5 lakh (including Section 80C). Plus, you get an additional ₹50,000 under 80CCD(1B).
Want to manage your NPS account like a pro? That’s where PensionBox comes in. Whether it’s tracking contributions, checking returns, or switching schemes—PensionBox makes CNPS feel less like paperwork and more like progress.
## Why does it matter?
Because employer contributions to CNPS are the closest thing to free money you’ll get in your working life. It's an instant boost to your retirement fund—and you don’t even have to lift a finger. Plus, with platforms like [PensionBox](https://www.pensionbox.in), you can make smarter choices, faster.
## Final thoughts
So next time someone says “CNPS,” don’t tune out. Tune in. Understand what your company can contribute, how it impacts your tax, and how you can grow your wealth smartly with NPS. And hey, if you're lucky enough to have access through [PensionBox](https://www.pensionbox.in), you’re already ahead of the curve.
Now go on, check with HR, peek into your NPS statement, and start making the most of your CNPS today.

<img src="https://pensionbox-public-bucket.s3.ap-south-1.amazonaws.com/BlogInnerImages/Frame%201171275643.jpg" width="100%"></img>

Let’s talk about something that sounds boring but is actually super rewarding—employer contributions to your Corporate NPS (CNPS). If you’re wondering what your company can pitch into your retirement fund and how much they’re allowed to, you’re in the right place. Stick around, and we’ll break it down in a way that’s way easier to digest than your HR policy document.

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