Joining a corporate NPS plan makes sense for those with surplus money

However, given the low liquidity, invest an amount you will not need before 60

Employees of many companies would have received letters from their human resource department recently saying that they have the option to contribute to the National Pension System (NPS) in the form of employer’s contribution. The option will be available in addition to the Employees’ Provident Fund (EPF) contribution. 

The major benefit of opting for a corporate NPS plan is the additional tax benefit you can avail. Contributions made by the employer are eligible for deduction under Section 80CCD (2). “The maximum amount eligible for deduction will be the lower of the following: Actual contribution by employer, or 10 per cent