Pension rules, charges and 2026 changes
NPS charges in 2026 — fund management fee, CRA charges and point-of-presence fees explained
What NPS really costs you: the pension fund fee slabs from April 2026, CRA account charges, PoP charges on contributions, and how small percentages add up over decades.
NPS is one of the cheapest long-term investment products in India, but it is not free. Your money pays four kinds of charge: the pension fund's investment management fee, deducted from the fund's NAV; small custodian and regulatory charges, also in the NAV; the central recordkeeping agency (CRA) charges for opening and maintaining your account, deducted by cancelling units; and point-of-presence (PoP) charges when you contribute through a bank or intermediary. From 1 April 2026, PFRDA set a new investment management fee structure for five years, reported as slab rates of 0.12%, 0.08%, 0.06% and 0.04% a year depending on the fund's assets under management for non-government schemes. All charges are revised by PFRDA circular, so treat the figures here as illustrative and check the current schedule on PFRDA's or NPS Trust's website.
The four layers of charges
| Charge | Who receives it | How it is collected | Typical size |
|---|---|---|---|
| Investment management fee | Pension fund | Built into NAV, daily | Fraction of a percent a year |
| Custodian and NPS Trust charges | Custodian, NPS Trust | Built into NAV | Very small percentages |
| CRA charges | Recordkeeping agency | Cancellation of units, yearly or per transaction | Fixed rupee amounts |
| PoP charges | Bank or intermediary | Deducted from each contribution, or paid separately | Percentage with a minimum and maximum |
Because the first two are in the NAV, you will not see them as separate lines on your statement. The CRA charges appear as unit deductions. PoP charges show as a deduction from the amount credited.
The 2026 fund management fee
PFRDA revised the investment management fee (IMF) with effect from 1 April 2026 (board decision announced on 1 January 2026; circular PFRDA/2026/15/REG-PF/04 of 6 March 2026), setting it for non-government sector subscribers on a slab basis by the pension fund's assets:
| Fund's assets under management (non-government) | Fee per year |
|---|---|
| Up to ₹25,000 crore | 0.12% |
| ₹25,000–₹50,000 crore | 0.08% |
| ₹50,000 crore–₹1.5 lakh crore | 0.06% |
| Above ₹1.5 lakh crore | 0.04% |
The fee for government sector employees in the composite scheme, auto choice or active choice G 100 is unchanged. Schemes under the Multiple Scheme Framework use the same slabs, with MSF corpus counted separately. The annual regulatory fee of 0.015% of AUM paid by pension funds to PFRDA is unchanged; 0.0025% of AUM from it goes to the Association of NPS Intermediaries for outreach. The effective fee for a large fund is a blend of the slabs, so the percentage you actually bear can be lower than the headline 0.12%.
Worked example: what 0.1% means over 25 years
Illustrative assumptions. ₹8,000 a month for 25 years, gross return 9% a year.
- With total asset-based charges of 0.1% a year, the net return is about 8.9%, and the corpus is roughly ₹88 lakh.
- With 1% a year (a level common in some insurer pension plans), the net return is about 8%, and the corpus is roughly ₹76 lakh.
The gap of about ₹12 lakh comes only from charges. This is the main reason NPS compares well with high-cost pension products, and why you should read the charges of any plan sold as a "retirement solution". Try it in the retirement corpus calculator by reducing the rate by the charge.
For a one-year rupee figure on your current balance, use the NPS charges calculator.
CRA charges
Each CRA publishes its own schedule for account opening (including the PRAN kit or ePRAN), annual maintenance and per-transaction charges. The charges for UPS, APY and NPS Vatsalya accounts are set separately and were reported as revised from 1 October 2025. Fixed charges matter most for small accounts: ₹100 a year on a ₹20,000 balance is 0.5%, while on ₹20 lakh it is negligible.
PoP charges
If you contribute through a bank branch or an intermediary, a PoP charge is deducted from each contribution, usually a percentage with a minimum and maximum per transaction. Contributing online through the CRA's eNPS route usually carries lower charges. Ask your PoP for its schedule before setting up a standing instruction.
How to reduce what you pay
- Contribute online, and in fewer, larger instalments if PoP charges have a per-transaction minimum.
- Avoid unnecessary switches between fund managers or schemes, each of which can carry a charge.
- Choose a scheme with a reasonable fee, but do not choose on fee alone; a fund's long-term returns and risk matter more than a few basis points.
- Keep a single PRAN; a duplicate account doubles fixed charges.
Charges at exit
Annuities bought at exit have their own implicit costs, reflected in the annuity rate rather than a fee. Comparing quotes from more than one annuity service provider is the main way to control this cost; see annuity options.
Back to the 2026 overview, or read NPS Tier I and Tier II.
Frequently asked questions
Where can I see the fee my fund charges?
NPS Trust publishes scheme-wise information and PFRDA publishes the fee circulars. Your pension fund's website also discloses charges.
Are NPS charges lower than mutual funds?
The investment management fee is generally lower than the expense ratio of most actively managed mutual funds. Direct index funds can also be very cheap, so compare like with like.
Do charges reduce my contributions?
PoP charges are deducted from contributions. Fund fees are deducted from the NAV. CRA charges are deducted by cancelling units.
Are government employees charged the same?
Government sector schemes have their own fee arrangements and CRA charge schedules. Check your statement and PFRDA's circulars.
