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Centre clarifies pension contribution rules under UPS during suspension; Govt share to be based on Post-Inquiry Emoluments

New Delhi, Oct 30 (UNI) The Central Government has clarified the rules governing pension contributions by employees covered under the Unified Pension Scheme (UPS) during the period of suspension, specifying how contributions by both employees and the government will be adjusted once disciplinary or other proceedings are concluded.
In an office memorandum dated October 27, 2026, the Department of Pension and Pensioners' Welfare, under the Ministry of Personnel, Public Grievances and Pensions, explained the provisions relating to contributions by subscribers and the government during suspension under the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025.
According to the memorandum, Rule 6(2) allows an employee under suspension to opt for making contributions to the UPS during the suspension period.
However, if the employee chooses not to contribute during this period, the government will not make its corresponding contribution either.
The memorandum further clarifies that if, after completion of the inquiry, the government treats the suspension period as duty or as leave for which leave salary is payable, the pension contributions will be recalculated on the basis of the emoluments to which the employee becomes entitled for that period.
Any difference between the government contribution payable after such recalculation and the amount already deposited during suspension will be credited to the employee's individual pension corpus. The adjustment will be made by valuing the amount at the net asset value under the default investment pattern and allocating the corresponding units as on the last working day of the month in which the contribution adjustment is made.
Referring to Rule 7(3), the department has also clarified that where an employee remains under suspension, the government's contribution will be calculated on the basis of emoluments determined after taking into account the subsistence allowance paid to the employee during the suspension period.
The memorandum further provides that where the final orders treat the suspension period as duty or as leave carrying leave salary, the government's contribution will be determined according to the emoluments admissible to the employee for that period.
The difference between the revised contribution and the amount already deposited will accordingly be credited to the subscriber's individual pension corpus.
All ministries and departments have been asked to bring these provisions to the notice of officials handling UPS and NPS-related matters in their respective establishments and attached and subordinate offices to ensure strict implementation.
The memorandum was issued by Samin Ansari, Under Secretary, Government of India.
UNI KK ARN
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