While EPF and NPS are designed for fundamentally distinct purposes; 54% companies suggest merging the two eventually

New Delhi, 27 September, 2016 — Eighty percent of India Inc. feel the government should make retirement benefit plans more tax friendly in order to improve employee participation. 70% feel increased employee education is needed, while 59% suggest making access to plans simple and easy. These are some of the noteworthy findings of The India Retirement Benefits Response Study* by global advisory, broking and solutions company Willis Towers Watson (NASDAQ: WLTW).

The study gauges Corporate India’s response to Government initiatives aimed at leading the country towards being a pensioned society.

Employees’ Provident Fund (EPF) is seen as a strong pillar in supporting retirement adequacy goals with 59% suggesting widening its scope. At the same time, the National Pension System (NPS) continues to draw the attention of Indian employers with 67% suggesting making it compulsory. The study cautions that while NPS and EPF are designed for fundamentally distinct purposes, 57% companies want the government to provide employees an option between the two, whereas 54% suggest merging them.

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Kulin Patel, Director, Willis Towers Watson, said, “Recent Government initiatives around driving pension adequacy are a step in the right direction and what is now required is implementation guidance. The study findings clearly indicate that employers are seeking greater clarity from Government around the role and interlinkages between various schemes like EPF, NPS and Superannuation.”

The study also found that there is an increased employee interest around NPS with two-third employees frequently or occasionally seeking information around it. One in three surveyed organisations currently offer NPS and as many as 70% of those not offering, plan to implement it in the near future. Companies cited ‘project planning and POP selection’ and ‘understanding plan design against tax rules’ as the top challenges in rolling out NPS.

Kulin Patel further said, “With all new Central and State Government employees (after respective cut-off dates) now part of NPS and an increased interest in the private sector, NPS will play a pivotal role in driving retirement adequacy. India Inc. is well advised to improve their overall understanding of the product, assess employee needs and identify specialised assistance areas for a smooth roll out.”

About the study

In an effort to gauge India Inc’s response to the Union Government’s initiative to lead India towards being a pensioned society, Willis Towers Watson conducted this pioneering study aimed to understand the current thinking amongst employers and plans to address related developments. The survey was conducted across sectors during April to May 2016 and drew responses from 118 companies and senior leaders.


Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 39,000 employees in more than 120 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential.