UPS Contribution During Suspension: DoPPW Clarifies Subscriber and Government Contribution Rules (OM dated 27 October 2026)
UPS Contribution During Suspension: DoPPW Clarifies Subscriber and Government Contribution Rules (OM dated 27 October 2026)
The Department of Pension and Pensioners’ Welfare (DoPPW), Ministry of Personnel, Public Grievances and Pensions, has issued an Office Memorandum dated 27 October 2026 on the contribution by the subscriber to the Unified Pension Scheme (UPS) and the contribution by the Government during the period of suspension. The OM, No. 57/03/2022-P&PW(B)/8361, refers to the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025.
It explains how contributions work when a Central Government employee covered under UPS is placed under suspension, and what happens if the suspension period is later treated as duty or leave.
Key Highlights of the OM
| Particulars | Details |
|---|---|
| Issuing authority | Department of Pension and Pensioners’ Welfare, Ministry of Personnel, Public Grievances and Pensions |
| OM number | No. 57/03/2022-P&PW(B)/8361 |
| OM date | 27 October 2026 |
| Subject | Contribution by the subscriber to UPS and contribution by the Government during the period of suspension |
| Governing rules | CCS (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025 |
| Subscriber contribution | Rule 6(2): optional during suspension |
| Government contribution | Rule 7(3): based on emoluments determined taking subsistence allowance into account |
| Signed by | Samin Ansari, Under Secretary to the Government of India |
| Addressed to | All Ministries/Departments/Organisations |
Background: UPS Rules, 2025
The OM states that DoPPW has notified the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025 to govern the service-related matters of Central Government civil employees covered under the Unified Pension Scheme. The OM draws attention to two provisions that apply when an employee is under suspension: Rule 6(2) for the subscriber’s contribution and Rule 7(3) for the Government’s contribution.
Who Contributes What During Suspension?
Employee Contribution
- May be made at the subscriber’s option during suspension.
- Not compulsory.
- If the suspension period is later treated as duty or leave for which leave salary is payable, contribution is re-determined on the emoluments the subscriber becomes entitled to.
Government Contribution
- Made on the basis of emoluments determined by taking the subsistence allowance into account.
- No contribution if the subscriber opted not to pay during suspension.
- Re-determined if the suspension is later treated as duty or leave.
1. Rule 6(2): Subscriber’s Contribution During Suspension
Rule 6(2) provides that the contribution may be made by the subscriber, at his option, during the period of suspension. The employee is therefore not obliged to contribute while under suspension.
A proviso covers the case where, in the final orders passed by the Government on conclusion of the inquiry, the period spent under suspension is treated as duty or leave for which leave salary is payable. In that case, contributions to UPS shall be determined based on the emoluments the subscriber becomes entitled to for the suspension period.
The difference between the contribution to be deposited and the contribution already deposited during suspension shall be credited to the individual corpus of the subscriber. The credit is valued on the net asset value of the default pattern and corresponding units on the last working day of the month in which the contributions have to be adjusted.
2. Rule 7(3): Government’s Contribution During Suspension
Rule 7(3) provides that, in the case of a subscriber under suspension, the Government’s contribution shall be made on the basis of the emoluments determined by taking into account the subsistence allowance paid to the subscriber during the suspension period.
First proviso: subscriber opts out
In other words, if the subscriber chooses not to contribute during suspension, the Government contribution is also not made for that period.
Second proviso: suspension treated as duty or leave
Where, in the final orders on conclusion of the inquiry, the suspension period is treated as duty or leave for which leave salary is payable, the Government’s contributions to the individual corpus shall be determined based on the emoluments the subscriber becomes entitled to for the suspension period. The difference between the contribution to be deposited by the Government and the amount already deposited during suspension shall be credited to the individual corpus, valued on the net asset value of the default pattern and corresponding units on the last working day of the month in which the contributions are to be adjusted.
How the Adjustment Works: Step by Step
Scenario Table
| Situation | What the OM provides |
|---|---|
| Subscriber contributes during suspension | Government contributes on the basis of emoluments determined by taking subsistence allowance into account (Rule 7(3)) |
| Subscriber opts not to contribute | No Government contribution for the suspension period |
| Suspension later treated as duty or leave (leave salary payable) | Subscriber and Government contributions are re-determined on emoluments entitled; the difference is credited to the individual corpus |
| Timing and valuation of the credit | NAV of the default pattern and corresponding units on the last working day of the month in which contributions are adjusted |
Illustrative example
Contribution deposited during suspension: ₹4,000
Contribution due on emoluments entitled (after suspension treated as duty): ₹9,000
Difference credited to individual corpus: ₹9,000 − ₹4,000 = ₹5,000
The same method applies separately to the Government’s contribution.3. Instructions to Ministries and Departments
All Ministries and Departments have been requested to bring these provisions to the notice of the personnel dealing with UPS/NPS matters of employees in the Ministry or Department and in the attached and subordinate offices under them, for strict implementation.
4. What Should Offices and Employees Do?
For DDOs and accounts staff
- Check whether the subscriber has opted to contribute during suspension, and record the option.
- Determine the Government contribution on the basis of the subsistence allowance paid.
- When final orders treat the suspension as duty or leave, re-determine contributions on emoluments entitled.
- Credit the difference to the individual corpus as per the OM.
For employees under suspension
Frequently Asked Questions (FAQs)
1. Is the employee required to contribute to UPS during suspension?
No. Under Rule 6(2), contribution may be made by the subscriber at his option during the period of suspension.
2. On what basis does the Government contribute during suspension?
Under Rule 7(3), the Government contribution is made on the basis of emoluments determined by taking into account the subsistence allowance paid to the subscriber during suspension.
3. What if the subscriber opts not to contribute during suspension?
No contribution shall be made by the Government during the period of suspension where the subscriber had opted not to pay his contribution.
4. What happens if the suspension period is treated as duty or leave?
Contributions are determined on the emoluments the subscriber becomes entitled to for the suspension period. The difference between the contribution to be deposited and the amount already deposited is credited to the individual corpus.
5. How is the difference amount credited to the individual corpus?
It is credited to the individual corpus valued on the net asset value of the default pattern and corresponding units on the last working day of the month in which the contributions have to be adjusted.
6. Who must implement the OM?
All Ministries and Departments have been asked to bring the provisions to the notice of personnel dealing with UPS/NPS matters in the Ministry or Department and in attached and subordinate offices for strict implementation.
Conclusion
The DoPPW OM dated 27 October 2026 clarifies that a UPS subscriber’s contribution during suspension is optional, that the Government contributes on the basis of subsistence allowance unless the subscriber opts out, and that contributions are re-determined and the difference credited to the individual corpus if the suspension period is later treated as duty or leave. Ministries and Departments have been asked to implement these provisions strictly.
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