NPS Calculator — National Pension System

PFRDA Rules — Non-Government Subscribers (December 2025 Amendment)

Normal Exit (after 15 years OR at age 60, whichever is earlier):
Corpus ≤ ₹8 lakh → 100% lump sum. No annuity required.
Corpus ₹8L to ₹12L → up to ₹6L lump sum + balance via SUR (min 6 years) or annuity.
Corpus > ₹12L → up to 80% lump sum, minimum 20% annuity.
Premature Exit (before 15 years / before age 60):
Corpus ≤ ₹2.5L → 100% lump sum.
Corpus > ₹2.5L → 20% lump sum, 80% mandatory annuity.
Partial Withdrawal: Up to 25% of own contributions, after 3 years, max 3 times during subscription, for PFRDA-specified purposes only (education, marriage, illness, house purchase, skill development).
Deferment: Annuity purchase or lump sum can be deferred up to age 85.
Tax (Section 10(12A)): Only 60% of corpus is tax-free under current law. The additional 20% permitted by PFRDA remains taxable at your income slab until the Finance Act is amended.

Source: PFRDA (Exits and Withdrawals under NPS) Amendment Regulations, 2025. Gazette notification dated 16 December 2025.

Current Age (years) — min 18

Exit Age (years) — max 85

Normal exit at 60 or after 15 years. Max deferral to 85.

Monthly Contribution (₹)

Minimum ₹500 per month for Tier I.

Annual Step-Up in Contribution (%)

Increase contribution each year (optional).

Expected Annual Return (%)

Historical Tier I equity returns: 10-12% CAGR (not guaranteed).

Annuity Rate (% p.a.) — indicative

Set by empanelled ASPs at retirement. Typically 5–7% p.a.

Exit Type

Annuity % to purchase (if corpus > ₹12L) — min 20%

Only applies when corpus exceeds ₹12L. You choose between 20% and 100%.

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Tax Benefits for Non-Government Subscribers

Section	Benefit	Limit	Regime
80CCD(1)	Employee/self-employed own contribution	Up to 10% of gross income, within ₹1.5L of Sec 80C	Old Regime only
80CCD(1B)	Additional NPS contribution — over and above 80C	Up to ₹50,000 extra deduction	Old Regime only
80CCD(2)	Employer contribution to NPS	Up to 10% of basic + DA (private); 14% for Central Govt	Both regimes
Sec 10(12A)	Lump sum at exit — tax free	60% of corpus is tax-free. Additional 20% (PFRDA rule) taxable until Finance Act amended.	Both regimes
Annuity income	Monthly pension received	Fully taxable at applicable slab rate	Both regimes

PFRDA Rules — Government Employees (December 2025 Amendment)

Normal Exit at Superannuation:
Corpus ≤ ₹8L → 100% lump sum, no annuity required.
Corpus ₹8L to ₹12L → up to ₹6L lump sum + balance via SUR or annuity.
Corpus > ₹12L → maximum 60% lump sum, minimum 40% annuity (60:40 rule unchanged).
Premature Exit (before superannuation):
Corpus ≤ ₹2.5L → 100% lump sum.
Corpus > ₹2.5L → 20% lump sum, 80% mandatory annuity.
Employer Contribution: Central Govt employees — 14% of basic + DA. State Govt / Corporate — 10% of basic + DA. Deductible under Section 80CCD(2) in both regimes.
Deferment: Can stay in NPS up to age 85 without making fresh contributions.
Partial Withdrawal: 25% of own contributions, after 3 years, max 3 times, for PFRDA-specified purposes.

Source: PFRDA (Exits and Withdrawals under NPS) Amendment Regulations, 2025. Gazette notification dated 16 December 2025.

Current Age (years)

Superannuation Age

Employee Monthly Contribution (₹)

Employer Monthly Contribution (₹)

Central Govt: 14% of basic+DA. State/PSU: 10%.

Expected Annual Return (%)

Annuity Rate (% p.a.) — indicative

Annual Step-Up in Employee Contribution (%)

Accounts for salary increments over time.

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NPS Tier II Account

Eligibility: Only existing NPS Tier I account holders can open Tier II.
Withdrawal: Completely free — any amount, any time, no restrictions. No lock-in (except govt employees claiming 80C, who have 3-year lock-in).
No annuity requirement: Unlike Tier I, no mandatory annuity purchase on exit.
Tax — Private sector / Self-employed: No tax deduction on contributions. Gains are taxable at applicable slab rate on withdrawal.
Tax — Government employees: Contributions up to ₹1.5L eligible for 80C deduction with 3-year lock-in per investment.
Minimum to open: ₹1,000. Subsequent contributions: minimum ₹250. No minimum annual contribution required.
Fund managers: Same 8 PFRDA-registered Pension Fund Managers as Tier I.

Monthly Contribution (₹) — minimum ₹250

Expected Annual Return (%)

Investment Period (Years)

Annual Step-Up (%)

Subscriber Type

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Lock-in Period

None for private sector / self-employed. Government employees: 3 years per investment (to claim 80C benefit).

Withdrawal

Any amount, any time, no restrictions. No annuity required.

Tax Benefit

Private: No deduction. Govt employees: 80C up to ₹1.5L with 3-year lock-in. Gains taxable at slab rate.

Minimum Contribution

₹1,000 to open. ₹250 for subsequent contributions. No minimum annual amount.

Fund Managers

Same 8 PFRDA-registered PFMs as Tier I — SBI, HDFC, ICICI Pru, Kotak, UTI, Aditya Birla, LIC, Max Life.

Best Use

Medium-term goals where liquidity is needed. Returns comparable to equity mutual funds with similar risk.

NPS Vatsalya — Key Rules (PFRDA, 2024)

Eligibility: All Indian minors from birth to 17 years. Account in child's name, managed by parent/guardian. PRAN issued in child's name.
Minimum contribution: ₹1,000 per year. No maximum. Any frequency.
Partial withdrawal before 18: After 3-year lock-in, up to 25% of own contributions, max 2 times before age 18. Only for child's education, specified illness, or disability exceeding 75%.
At age 18 — Exit options:
Corpus ≤ ₹2.5L → 100% lump sum, tax-free.
Corpus > ₹2.5L → 60% lump sum (tax-free) + minimum 40% annuity.
Option to continue in Vatsalya for up to 3 more years (ages 18–21).
Seamless conversion to regular NPS Tier I — same PRAN retained. KYC within 3 months of turning 18.
At retirement (60+): Normal NPS Tier I exit rules apply (PFRDA Dec 2025).
Power of early start: A child starting at age 5 gets 55 years of compounding — one of the longest compounding periods possible in any regulated scheme.

Source: PFRDA NPS Vatsalya Scheme guidelines; NPS Trust documentation 2024.

Child's Current Age (years) — 0 to 17

Monthly Contribution (₹)

Minimum ₹1,000/year (₹84/month). No maximum.

Expected Annual Return (%)

Annual Step-Up (%)

Plan at Age 18

Monthly Contribution after 18 as NPS Tier I (₹)

If continuing, enter the monthly amount the child will contribute from age 18 to 60.

Annuity Rate at Retirement (% p.a.)

Annuity % at Retirement

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National Pension System
NPS Calculator

PFRDA Rules — Non-Government Subscribers (December 2025 Amendment)

Tax Benefits for Non-Government Subscribers

PFRDA Rules — Government Employees (December 2025 Amendment)

NPS Tier II Account

Lock-in Period

Withdrawal

Tax Benefit

Minimum Contribution

Fund Managers

Best Use

NPS Vatsalya — Key Rules (PFRDA, 2024)

Want Expert NPS Guidance?

National Pension SystemNPS Calculator

PFRDA Rules — Non-Government Subscribers (December 2025 Amendment)

Tax Benefits for Non-Government Subscribers

PFRDA Rules — Government Employees (December 2025 Amendment)

NPS Tier II Account

Lock-in Period

Withdrawal

Tax Benefit

Minimum Contribution

Fund Managers

Best Use

NPS Vatsalya — Key Rules (PFRDA, 2024)

Want Expert NPS Guidance?

National Pension System
NPS Calculator