Pension rules, charges and 2026 changes
Retirement and pension schemes in India in 2026 — EPF, EPS, NPS, UPS, PPF and more
Which pension schemes apply to you in 2026, how each one pays out, and the rule changes of 2025–26 you should know before you plan retirement income.
Most working Indians will retire with money from two or three schemes, not one. A private-sector employee typically has an EPF balance and an EPS pension from EPFO, may have added NPS through the employer or personally, and may hold a PPF account. A central government employee who joined after 2004 has NPS or, since 1 April 2025, the option of the Unified Pension Scheme (UPS). A self-employed person or informal worker relies on NPS, Atal Pension Yojana and small savings. At retirement, the Senior Citizens' Savings Scheme (SCSS) and annuities turn a lump sum into monthly income. This guide maps the whole system as it stands in October 2026 and points you to the detailed guide for each piece.
The schemes at a glance
| Scheme | Run by | Type | Who is in it |
|---|---|---|---|
| EPF | EPFO (Ministry of Labour and Employment) | Savings account with declared interest | Employees of covered establishments |
| EPS | EPFO | Defined pension based on service and salary | EPF members (employer's 8.33% goes here) |
| NPS | PFRDA, with NPS Trust and recordkeeping agencies | Market-linked defined contribution | Any citizen 18–85; government and corporate staff |
| UPS | PFRDA and the Department of Expenditure | Assured payout built on NPS contributions | Central government NPS employees who opted in |
| Atal Pension Yojana | PFRDA, through banks and post offices | Guaranteed small pension | Account holders aged 18–40 who are not income-tax payers |
| PPF | Ministry of Finance, through banks and post offices | 15-year savings account with quarterly rate | Any resident individual |
| SCSS | Ministry of Finance, through banks and post offices | 5-year deposit paying quarterly interest | Residents aged 60+ and some early retirees |
| Annuities | Life insurers regulated by IRDAI | Pension for life bought with a lump sum | Anyone, including NPS exits |
The comparison table on the compare page adds exit rules and the main catch for each one.
What changed in 2025 and 2026
Several rules that older articles still describe are no longer current:
- New EPF scheme. The Employees' Provident Funds Scheme, 2026 was notified under the Code on Social Security, 2020 by G.S.R. 525(E) of 29 June 2026 and came into force the same day, replacing the 1952 scheme. Business press reported an Employees' Pension Scheme, 2026 notified alongside it, but EPFO's own August 2026 press release still refers to the Employees' Pension Scheme, 1995, so check the EPFO website for the pension scheme text in force. Contribution rates (12% each from employee and employer) and the EPS pension formula carried over. See EPS pension rules.
- Higher wage ceiling. The Union Cabinet approved raising the wage ceiling for mandatory EPF coverage from ₹15,000 to ₹25,000 a month, effective from 17 September 2026 (PIB release of 16 September 2026). See EPF contributions and the wage ceiling.
- Simpler EPF withdrawals. In October 2025 the EPFO board merged 13 partial-withdrawal purposes into three categories, allowed up to 75% of the eligible balance to be withdrawn with a 25% minimum balance, and lengthened the waiting period for full settlement after leaving a job to 12 months (36 months for the pension part).
- New NPS exit rules. The PFRDA exit regulations amended in December 2025 let most non-government subscribers take up to 80% as a lump sum at normal exit, with at least 20% in an annuity, and allow staying invested up to age 85. See NPS exit and withdrawal rules.
- UPS in force. The Unified Pension Scheme started on 1 April 2025. Existing central government employees had until 30 November 2025 to opt in. See the UPS guide.
- New NPS fund management fees apply from 1 April 2026 for five years. See NPS charges.
How to work out which schemes you have
- Look at your salary slip. A line for "PF" or "EPF" means you are an EPF member and almost certainly an EPS member too, unless you joined after 1 September 2014 with wages above the ceiling of that time.
- Search your UAN on the EPFO member portal. The passbook shows employee share, employer share and pension contribution separately.
- Check for a PRAN. A Permanent Retirement Account Number means an NPS account, opened by you or your employer.
- List small-savings accounts. PPF, SCSS, post office monthly income scheme and recurring deposits are often scattered across a bank and a post office.
- Find insurance pension plans. Older endowment-style pension policies and annuities bought from life insurers are separate again.
Determinants of your retirement income
Whatever the scheme, the same five factors decide what you get:
- How much goes in. For EPF and EPS this is tied to basic pay plus dearness allowance; for NPS and PPF you choose.
- How long. Ten extra years of contributions often matter more than a higher return.
- The return or the formula. EPF and PPF pay declared rates; NPS is market-linked; EPS and UPS use a formula based on service and salary.
- Costs. NPS charges are low by Indian standards but not zero; insurer pension plans can cost much more.
- How the corpus becomes income. A lump sum used to buy an annuity at 6–7% (illustrative) gives far less monthly income than people expect. A ₹50 lakh corpus at an illustrative 6.5% buys about ₹27,000 a month before tax.
To test your own figures, use the retirement corpus calculator, then read the retirement corpus calculation guide.
Choosing between overlapping options
Most people do not choose between EPF and NPS: EPF is compulsory if your employer is covered and your wages are within the ceiling. The real choices are:
- Voluntary Provident Fund versus NPS versus PPF for extra savings. VPF earns the EPF rate, PPF earns the small-savings rate, and NPS gives market exposure with partial lock-in until 60.
- NPS active versus auto choice. Auto choice reduces equity as you age; active choice lets you set the mix within the limits.
- UPS versus NPS for central government employees, a one-time decision with a one-way route back to NPS under conditions.
- How much NPS to annuitise at exit, now that the minimum for most private subscribers is 20%.
- SCSS, annuity or a mix for retirees, discussed in the retirement income plan example and PPF, SCSS and PMVVY for retirees.
Frequently asked questions
Is EPS the same as EPF?
No. EPF is a savings account with your name, a balance and interest. EPS is a pension scheme: the employer's 8.33% goes into a common pool, and you get a monthly pension based on a formula, not on a balance.
Do I need NPS if I already have EPF?
Not necessarily. EPF already forces saving at 24% of covered wages. NPS adds equity exposure and a separate lock-in. Whether you need it depends on your target corpus, which you can estimate in the retirement corpus guide.
Are these schemes safe?
EPF, EPS, PPF and SCSS are government-backed schemes. NPS is regulated by PFRDA and assets are held by a custodian, but the value of the funds rises and falls with markets. An annuity depends on the insurer that sells it, regulated by IRDAI.
How often do the rules change?
Interest rates change every quarter (PPF, SCSS) or year (EPF). Structural rules change less often, but 2025 and 2026 brought unusually many changes, so check the date on anything you read.
Official sources
- EPFO — EPF and EPS schemes, circulars, member portal
- PFRDA — NPS, UPS and Atal Pension Yojana regulations
- NPS Trust — scheme returns, fund manager disclosures
- National Savings Institute — PPF and SCSS rules and current rates
- Ministry of Labour and Employment — Code on Social Security, 2020 and wage ceiling notifications
