Archive · 12 Oct 2026
Compare Retirement Benefits, Not Just Salary, When Changing Jobs
When you change jobs, it is tempting to choose the one with the bigger salary.
But a job can also help save money for your retirement.
Employers may contribute different amounts to retirement plans.
One job might pay more but not offer corporate NPS contributions.
The article says those contributions and their possible tax benefits should be included when comparing offers.
You can also keep your NPS account when you change employers.
Your PRAN and savings stay yours.
So compare what a job pays now with what it may help you save for later.
The article advises job seekers to compare retirement benefits as well as salary and take-home pay.
It says employers may contribute 12% of basic salary to EPF or limit contributions to the applicable statutory amount, stated as Rs 25,000.
An example compares a Rs 30 lakh job with Rs 17,500 monthly corporate NPS contributions against a Rs 36 lakh offer without corporate NPS.
The article says eligible employer NPS contributions may qualify for deductions up to 14% of basic salary under the new tax regime and 10% under the old regime.
NPS accounts are portable: a person's PRAN and accumulated corpus remain theirs when they change jobs, and a new employer can continue contributions.
- Who
- Employees comparing job offers.
- What
- The article recommends weighing employer retirement contributions and related tax benefits alongside salary.
- When
- When considering a job change or negotiating compensation.
- Where
- Not specified.
- Why
- Different compensation structures can lead to different retirement savings, even when one offer has a higher CTC.
- EPF employer contribution example
- The article contrasts a contribution of 12% of basic salary with one limited to the applicable statutory amount, stated as Rs 25,000.
- First job offer in example
- Rs 30 lakh annual salary with Rs 17,500 monthly corporate NPS contributions.
- Second job offer in example
- Rs 36 lakh annual salary without corporate NPS.
- Annual NPS contribution in example
- Rs 2.1 lakh.
- New tax regime
- Eligible employer NPS contributions may qualify for a deduction up to 14% of basic salary.
- Old tax regime
- Eligible employer NPS contributions may qualify for a deduction up to 10% of basic salary.
- NPS portability
- The PRAN and accumulated corpus remain with the employee when changing jobs; a new employer offering corporate NPS can continue the existing account.