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 employees who joined from 1 January 2004.
2009
Opened to all citizens
NPS was extended to every Indian citizen on a voluntary basis, well beyond government service.
2013
PFRDA given statutory status
The PFRDA Act, 2013 gave the pension regulator a full statutory mandate to regulate and develop NPS.
2015
Extra ₹50,000 tax deduction
Section 80CCD(1B) added a dedicated NPS deduction over and above the ₹1.5 lakh 80C limit.
2019
Government share raised to 14%
The central government’s contribution rose from 10% to 14% of Basic + DA, and the lump sum became tax-free.
Today
A large, regulated system
Millions of government subscribers build a retirement corpus through NPS under PFRDA oversight.
Common questions
What government employees ask first
Who is covered under government NPS?
All central government employees who joined service on or after 1 January 2004 (except the armed forces) are covered, along with employees of state governments that have adopted NPS.
How much is contributed each month?
The employee contributes 10% of Basic + DA each month, and the government contributes 14% of Basic + DA to the same account.
Does the account stay if I change departments?
Yes. Your PRAN stays with you throughout your service and continues unchanged when you move between departments, postings or locations.
What are the tax benefits?
Your own contribution is deductible under Section 80CCD(1) within the ₹1.5 lakh limit, with an additional ₹50,000 under Section 80CCD(1B). The government’s contribution is deductible under Section 80CCD(2) — up to 14% of Basic + DA — over and above those limits.