Central government personnel on probation are explicitly required to make mandatory pension deductions to maintain their coverage. Suspended staff retain the discretion to contribute based on their subsistence allowance, which determines whether matching state funds are released. If a suspension period is retroactively deemed regular duty, contributions are recalculated based on entitled pay and credited using prevailing net asset values. Furthermore, retirement benefits for personnel on deputation will now follow strict procedural routes depending on whether the host organization is a central, state, or foreign entity.
Key points
Pension deductions remain strictly mandatory for new recruits serving out their probation…: Pension deductions remain strictly mandatory for new recruits serving out their probationary terms.
Government contributions during an employee suspension are entirely contingent upon the s…: Government contributions during an employee suspension are entirely contingent upon the subscriber opting to contribute from their allowance.
Administrative responsibility for processing retirement benefits depends on whether an em…: Administrative responsibility for processing retirement benefits depends on whether an employee is deputed to another central department, a state government, or foreign service.
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Central government employees covered under the Unified Pension Scheme (UPS) must follow specific rules on pension contributions during probation, suspension, deputation and periods of absence from duty.
In a chain of Office Memorandums (OM) dated October 27, 2026, the Department of Pension and Pensioners’ Welfare has clarified these provisions under the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025.
Here is what UPS subscribers should know about these provisions
Rule 6 (6) provides that the subscriber will contribute to the Unified Pension Scheme during the period of probation. This means that being on probation does not exempt an employee from making UPS contributions.
Under Rule 6(2), a subscriber may choose whether to contribute to UPS during the suspension period. It means that it is optional for an employee to contribute to the UPS during suspension.
However, the government clarified that as per Rule 7 (3), in the case of a subscriber under suspension, the government should make contributions to the employee’s UPS corpus.
The government also clarified that it will not make any…
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