NPS is a long-term, market-linked retirement product regulated by PFRDA. Its corporate appeal is a distinct tax deduction: employer contributions of up to 10% of basic + DA are deductible for the employee under section 80CCD(2) - over and above the ₹1.5 L 80C limit, and available under both tax regimes. That makes it a valuable, under-used CTC-structuring tool.
In India
Because 80CCD(2) survives in the new tax regime, employer-NPS has become one of the few remaining tax-efficient salary components - increasingly offered inside flexi benefit plans.
In practice
An employee with ₹80,000/mo basic routes 10% (₹8,000/mo, ₹96,000/yr) via employer NPS. That ₹96,000 is deductible under 80CCD(2), reducing taxable income even in the new regime - a benefit a plain salary hike wouldn't give.