Unified Pension Scheme contributions will be governed by different rules during probation and suspension, the Centre has clarified.
The Department of Pension and Pensioners’ Welfare (DoPPW) has explained when central government employees must contribute, when they can opt out and how pension deposits will be adjusted after an inquiry.
The clarifications were issued through an office memorandum dated October 27, 2026, under the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025.
The instructions are important for employees covered by UPS, particularly those who are on probation or facing suspension.
 UPS Contributions During Probation Are Mandatory
Employees covered by the Unified Pension Scheme must contribute to the scheme during their probation period. The contribution is compulsory and cannot be postponed until their services are confirmed.
The department referred to Rule 6(6) of the 2025 rules, which requires subscribers to make contributions during probation.
Ministries and departments have been asked to inform officials handling UPS and NPS matters about this requirement and ensure its implementation.
This means newly recruited central government employees covered by UPS should account for pension contributions from the probation stage itself.
Can Employees Stop UPS Contributions During Suspension?
The rules provide a different arrangement for employees placed under suspension. Under Rule 6(2), an employee can choose whether to continue making UPS contributions during the suspension period.
The government’s contribution is linked to the employee’s decision. If the employee continues contributing, the government will also contribute based on the emoluments calculated after taking the subsistence allowance into account.
However, if the employee chooses not to contribute during suspension, the government will not make its corresponding contribution for that period. This means both contributions stop under this option.
What Happens If Suspension Is Later Treated as Duty?
The department has also clarified how pension contributions will be adjusted if the final decision after an inquiry treats the suspension period as duty or as leave for which leave salary is payable.
In such cases, the employee’s contributions will be recalculated using the emoluments they become entitled to for that period.
The difference between the amount due and the amount already deposited will be credited to the employee’s individual pension corpus.
The government’s contribution will also be recalculated under the same principle.
Any difference will be credited to the individual corpus using the applicable net asset value and corresponding investment units under the default investment pattern.
This provision is relevant because the final treatment of a suspension period can change the emoluments on which pension contributions are calculated.
What Employees Should Check
Employees covered by UPS should understand the difference between probation and suspension before making decisions about contributions.
Probation does not provide an option to postpone payments, while suspension allows the employee to choose whether to contribute.
Those placed under suspension should carefully consider the effect of opting out, particularly because the government will also stop its contribution during that period.
If the suspension period is later regularised as duty or qualifying leave, the rules provide for recalculation and adjustment of contributions.
The department has asked ministries and departments to circulate the clarification among personnel dealing with UPS and NPS matters for strict implementation.
Employees can check with their administrative or pension office to understand how the provisions apply to their individual service records.
