Employer NPS: the deduction that stays in the new regime

The income tax portal lists very few deductions for the new regime. One of them is section 80CCD(2): the contribution your employer makes to the Central Government pension scheme.

Regime	Employer	Limit
New	All categories	14% of salary
Old	Central or State Government	14% of salary
Old	PSU or others	10% of salary

Example

Illustrative example only. Salary for this purpose ₹8,00,000. New regime limit: 14% = ₹1,12,000. Old regime with a private employer: 10% = ₹80,000. Employer contribution ₹60,000 fits within both.

⚠️ Note

This is about the employer's contribution. Your own NPS deductions under 80CCD(1) and 80CCD(1B), up to ₹50,000, are listed only for the old regime.

Check it yourself

• ☐ Find the employer NPS line on your slip
• ☐ Compare it with Form 16
• ☐ Work out the limit for your regime
• ☐ Ask HR what counts as salary here

Salary slip format is ready, fill it in →

Source: incometax.gov.in, Salaried Individuals for AY 2026-27, section 80CCD(2).