Central government
Employees who joined on or after 1 January 2004 (armed forces excepted).
Government Sector NPS
Retirement security,backed by service
The structured, defined-contribution retirement system for central and state government employees — funded by both the employee and the government.
✓For central & state service
10%Employee share
of Basic + DA
of Basic + DA
+
14%Government share
of Basic + DA
of Basic + DA
Who it covers
Built for the government workforce
NPS applies to most government employees serving under the defined-contribution framework.
State governments
Most states have adopted NPS for their employees on similar terms.
Autonomous bodies
Several central and state institutions extend NPS to their staff.
One PRAN for life
A single permanent retirement account number stays with the employee.
How contributions work
Two contributors, one account
Each month both the employee and the government pay into the employee’s Tier-I NPS account.
Employee share
A fixed share of Basic + DA is contributed from salary.
Government share
The government adds its contribution to the same account.
Tax treatment
Contributions may qualify for deductions under applicable provisions.
Contribution rates and tax treatment follow the prevailing government NPS rules and the employee’s applicable regime.
The journey
How government NPS took shape
2004
Introduced for central government
NPS replaced the earlier defined-benefit pension for new central recruits.
2004+
Adopted by states
State governments progressively moved their employees to NPS.
2019
Government share raised to 14%
The government’s contribution for central employees was increased.
Today
A large, regulated system
Millions of government employees build a corpus through NPS.
Common questions
What government employees ask first
Who is covered under government NPS?
Most central and state government employees who joined under the defined-contribution framework are covered.
How much is contributed each month?
Broadly, the employee contributes a share of Basic + DA and the government adds its own contribution to the same account.
Does the account stay if I change departments?
The PRAN is designed to remain with the subscriber across eligible postings, subject to the applicable process.
What are the tax benefits?
Contributions may qualify for deductions under the applicable provisions and the employee’s tax regime.