The Finance Ministry has directed all Central Government departments to ensure that National Pension System (NPS) contributions are deposited on time.
The ministry has warned that if there is any delay in remitting contributions to the Pension Fund Regulatory and Development Authority (PFRDA), interest will have to be paid to the employee.
According to the new instructions, the interest amount must be credited to the employee’s pension account within 30 days of depositing the delayed contribution.
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Finance Ministry Warns Against Delays
In an Office Memorandum (OM) issued on July 10, 2026, the Department of Expenditure under the Controller General of Accounts (CGA) asked all government offices to strictly follow the timelines mentioned in the CCS (Implementation of NPS) Rules.
The ministry said that delays in depositing NPS contributions have been reported in several cases due to administrative and procedural reasons.
To address this issue, all departments have been instructed to ensure timely remittance of employees’ pension contributions.
Employees Will Receive Interest on Delayed Contributions
The Office Memorandum refers to Rule 8 of the CCS (Implementation of NPS) Rules, which states that if the government deposits an employee’s monthly NPS contribution after the prescribed deadline, the contribution must be credited along with interest for the delayed period.
The ministry has clarified that:
Interest must be credited to the employee’s NPS account within 30 days of the delayed contribution being deposited.
The applicable interest rate will be the same as the rate notified by the government for Public Provident Fund (PPF) deposits.
This ensures that employees do not suffer financial loss because of delays by government departments.
Officials Responsible for Delay May Face Action
The Finance Ministry has also made it clear that responsibility for delays will be fixed.
Under Rule 8(2)(i), the Head of Department (HoD) or Chief Controller of Accounts (CCA) must examine every case of delayed NPS contribution.
If the delay is found to be due to an administrative lapse:
The officials responsible may have to reimburse the government for the interest paid to employees.
The disciplinary authority may also recommend departmental action against the officials responsible for the delay.
Pending Amounts Must Be Cleared
The ministry has also instructed departments to clear all pending amounts lying under Head 8342-117 without delay.
It has directed all Principal CCAs, CCAs, and CAs to ensure that no pending amount remains under this accounting head.
Deadline Set for Compliance Report
All government departments have been asked to submit a detailed report on the actions taken to comply with these directions by July 31, 2026.
With these fresh instructions, the Finance Ministry aims to ensure that NPS contributions are deposited on time, employees receive the benefits they are entitled to without delay, and officials are held accountable for administrative lapses.