Employee covered under UPS is not required to make contributions during absence from duty

The Government of India has issued an office memorandum clarifying the contribution rules under the Unified Pension Scheme (UPS) for Central Government employees during periods of absence from duty. The memorandum was issued by the Department of Pension and Pensioners’ Welfare under the Ministry of Personnel, Public Grievances and Pensions on October 27, 2026.

The Unified Pension Scheme (UPS) was introduced by the Government of India for eligible Central Government employees covered under the National Pension System (NPS), effective from April 1, 2025. Under UPS, employees with at least 25 years of qualifying service are eligible for an assured pension equal to 50% of their average basic pay during the last 12 months before retirement, subject to applicable conditions. The scheme also provides a minimum assured pension of ₹10,000 per month for eligible employees with at least 10 years of qualifying service, family pension benefits and Dearness Relief. UPS is not automatically applicable to SBI employees.

The memorandum refers to the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025, which govern service-related matters of Central Government employees covered under the UPS. It clarifies the rules regarding contributions by employees and the government during periods when an employee is absent from duty.

According to Rule 6(3) of the rules, an employee covered under the UPS is not required to make contributions during a period of absence from duty, whether on leave or otherwise, for which no pay or leave salary is payable. This means that the employee’s contribution will not be required for such a period.

The memorandum also refers to Rule 7(2), which states that, subject to the proviso to Rule 7(1), the government will not make contributions for a period during which the employee is not required to contribute under the rules. Therefore, when an employee is not required to make a contribution for a particular period, the government’s contribution will also not be payable for that period, subject to the applicable provisions.

The Department of Pension and Pensioners’ Welfare has requested all ministries and departments to bring these provisions to the attention of personnel dealing with UPS and National Pension System (NPS) matters. The instructions are to be shared with the concerned offices and subordinate organisations to ensure strict implementation of the rules.

The clarification aims to ensure that the contribution rules are applied consistently across Central Government departments and that employees and officials handling pension matters are aware of their responsibilities during periods of absence from duty.

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