एनपीएस वात्सल्य के बारे में

Benefits

For Employees / Subscribers
• Formal Retirement Security: Access to a structured pension account — providing retirement security to millions of MSME workers who currently have no formal social security coverage.
• Account Portability: The PRAN stays permanently with the employee. Even if they change jobs, switch employers, or start their own business, the NPS account continues seamlessly.
• Market-Linked Wealth Creation: Contributions are invested across equity, corporate bonds, and government securities under PFRDA-regulated Pension Fund Managers, enabling long-term corpus growth. Returns are not guaranteed but reflect market performance (NAV published daily).
• Partial Withdrawal: To serve the immediate financial needs before age of 60 years, the subscriber can withdraw up to 25% of their own contributions for specific purposes, education, marriage, medical treatment, or purchase/construction of a house, up to a maximum of 4 times, with a gap of at least 4 years between each withdrawal.
• Flexibility in Exit up to Age 85: Subscribers can defer exit and continue contributing up to age 85, allowing the corpus to keep growing even after retirement.
• Nominee Protection: In case of the subscriber's death, the entire corpus is paid to the nominee or legal heir as per PFRDA rules.
• Tax Benefits (Self-contribution): Under the Old Tax Regime: deductions under Section 80CCD (1) up to ₹1.5 lakh, plus an exclusive additional deduction of ₹50,000 under Section 80CCD(1B).
• Tax Benefits (Employer contribution): Exempt under Section 80CCD (2) — up to 10% of Basic+DA under Old Tax Regime and up to 14% of Basic+DA under New Tax Regime (subject to overall combined cap of ₹7.5 lakh).

For Employers / MSME Enterprises
• Zero Setup or Maintenance Cost: The MSME pays no administrative, setup, or maintenance charges. All operational costs (Fund Management, CRA, and PoP charges as prescribed by PFRDA) are exceptionally low and are deducted directly from the subscriber's PRAN account upfront and via unit redemption.
• 100% Voluntary Contribution: Employer contribution is entirely voluntary. The MSME can choose to co-contribute alongside employees, or simply act as a facilitator to process employees' voluntary payroll deductions.
• Flexible Contribution Structure: Contributions are fully flexible based on terms of employment — equal (e.g., 10% from both sides), unequal (e.g., employee 10%, employer 14%), or made exclusively by either party.
• Tax Deductibility for Employer: Employer contributions qualify as a deductible business expense — up to 10% of Basic+DA under the Old Tax Regime and up to 14% under the New Tax Regime.
• Talent Attraction and Retention: Offering a pension benefit helps MSMEs compete with larger entities in attracting and retaining skilled employees.
• No Private Trust Required: All activities are managed through the existing NPS architecture under the NPS Trust — eliminating any need for the MSME to form or manage a private trust.
• EPF/PPF Compatibility: NPS can be voluntarily adopted alongside any existing EPF, PPF, or superannuation scheme. (Note: an individual employee can hold only one active NPS account.)

Eligibility

For Employers (MSME Entities)
• The entity should be a Micro, Small or Medium Enterprise. Udyam Registration Certificate, while preferred, is not mandatory.
• Onboarding of MSME on NPS model through a PFRDA-authorised PoP.
• No minimum or maximum employee strength required. An MSME can join even if it has only one or two employees, or just the business owner.
• Required documents: PAN (mandatory), TAN, GST, CIN and Udyam Registration Certificate (if available).

For Employees / Subscribers
• Indian Citizen, aged between 18 and 85 years.
• Employed with a registered MSME entity which is already onboarded in the framework of NPS.
• Must comply with KYC norms as applicable.

Enrolment & Operation

Step 1 — MSME Registration
The MSME selects a POP, which is registered with PFRDA and submits the required documents such as PAN, TAN, GST, CIN and Udyam Registration Certificate (if available) for their registration on CRA's platform.
Step 2 — Employee Enrolment and PRAN Issuance
Employees are enrolled through the PoP, either individually via the CRA portal or through employer-facilitated bulk upload. Each subscriber receives a unique 12-digit PRAN, along with a PRAN kit from the chosen CRA.
Step 3 — Contribution
The contributions are uploaded by the employer via the Subscriber Contribution File (SCF) mechanism. Contributions can be made monthly, quarterly, or at any frequency decided by the employer or employee, with no restriction on the number of contributions in a year and no upper limit on contribution amount.
However, the single contribution can also be uploaded by the employer or via POPs.
Step 4 — Investment Choice
The MSME can select a specific PFRDA-registered Pension Fund (PF) and asset allocation for all employees, or allow employees to make their own individual choices. Employees can change their Pension Fund Manager (PFM) up to twice a year and their asset allocation up to four times a year, in line with PFRDA guidelines. If the employer makes the initial choice, employees have the freedom to revise after one year (365 days).
Step 5 — Account Monitoring
Subscribers can check their NPS account balance and transaction history through the CRA portal, the NPS mobile app, and periodic account statements.

Digital Onboarding through the StAR NPS ’ Platform
In order to facilitate wider digital access and to streamline subscriber onboarding under NPS, BSE Technologie s Private Limited (BTPL) has operationalised the ‘StAR NPS’ platform for use by Points of Presence (PoPs) within the NPS architecture, as intimated vide PFRDA Circular No. PFRDA/2026/32/REG POP/06 dated 03rd June 2026. BTPL functions as a Technology Servic e Provider and does not undertake any regulated intermediary activity. For MSME owners and their employees , a large number of whom are located away from PoP branches , the platform offers a paperless, assisted route to open an NPS account and to make contributions.
(For more information please Click here)

Withdrawal and Exit / Continuation

Normal Exit — At Age 60 (or Superannuation)
• The subscriber can withdraw up to 80% of the corpus as a lump sum or via Systematic Unit Redemption (SUR). The remaining at least 20% must be used to purchase an annuity from an empanelled annuity service provider, providing a regular monthly pension.
• The subscriber may also choose to annuitize the entire corpus for maximum pension income.

Deferral of Exit or Continuation up to Age 85
• Subscribers can defer their lumpsum or annuity as per the provisions specified by PFRDA or subscriber can also continue to subscribe to his/her NPS account up to the age of 85, allowing the corpus to keep growing post-retirement.
• Partial withdrawals are still permitted during the deferred period.
Partial Withdrawal (Before Age 60)
• Up to 25% of the subscriber's own contributions may be withdrawn, up to a maximum of 4 times, with a gap of at least 4 years between each partial withdrawal.
• Permitted purposes: education, marriage, medical treatment, and purchase or construction of a house.
• Partial withdrawals are executed as per the provisions of PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015 and amendments thereto.

Premature Exit (Before Age 60)
Premature exit is executed as per the provisions of PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015 and amendments thereto.

On Death of Subscriber
• The entire accumulated corpus is paid to the nominee or legal heir as per exit regulations. No compulsory annuity purchase applies.

Portability

The PRAN is fully portable across the geography and employments. The subscriber retains their account and can continue with a new employer or MSME entity, and can also remain subscribed to NPS under the All-Citizens Model.

Tax Benefits under NPS-MSME

Note: Tax benefits are subject to the provisions of the Income Tax Act, 1961 as amended from time to time. Subscribers are advised to consult a tax advisor for their specific situation.

Grievance Redressal

In compliance with the provisions of PFRDA Act 2013, grievance redressal framework has been established under the provisions of PFRDA (Redressal of Subscriber Grievance) Regulations, 2015.

• Subscribers may raise grievances through the PFRDA Pension Sahayak portal, which has replaced the erstwhile Central Grievance Management System (CGMS) portal hosted on the CRA websites.
• Grievances may also be raised with the PoP directly.

PFRDA Pension Sahayak
PFRDA Pension Sahayak, launched on 22nd June 2026, is the Authority’s AI enabled grievance redressal platform for subscribers of the pension schemes regulated by PFRDA. It replaces the earlier Central Grievance Management System (CGMS) and builds upon the principles and techno logical advancements adopted under the Government of India’s NextGen Centralized Public Grievance Redress and Monitoring System (CPGRAMS) initiative. The platform provides a unified omnichannel interface accessible through web, mobile and WhatsApp, and may be accessed at https://pensionsahayak.pfrda.org.in
(For more information please Click here)