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<h1>Employer Pension Contributions Deductible up to 10% of Salary, Rising to 14% in 2025 Under Section 36(1)(iva)</h1> Employer contributions to a pension scheme, as outlined in Section 36(1)(iva) of the Income Tax Act, are deductible if they do not exceed 10% of an employee's salary, increasing to 14% from April 1, 2025, per the Finance (No. 2) Act, 2024. Salary for this purpose includes dearness allowance when specified in the employment terms but excludes other allowances and perquisites.