PF Compliance

EPF vs NPS: Which Retirement Vehicle Should Employees Choose?

2025-10-26 · 7 min

Many employers now offer NPS alongside EPF. Here's how the two compare for employees and CFOs.

Taxation

EPF: EEE up to wage cap; NPS: partial taxation at withdrawal with additional 80CCD(1B) deduction.

Returns

EPF returns are notified annually; NPS returns are market-linked.

Liquidity

EPF allows partial withdrawals; NPS is largely locked till 60.

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