Railways starts UPS pension scheme for its employees

By Sohail Khan 23 September 2026, 3:31 pm

Synopsis

The Ministry of Railways has announced the Unified Pension Scheme rules for employees covered under the National Pension System. Employees appointed after January 1, 2004, are eligible for this scheme and will contribute 10% of their basic pay. A minimum pension of Rs 10,000 is assured after completing ten years of service. Additionally, employees can opt for voluntary retirement after 20 years of service.

Image for UPS for Railway employees: Assured pension, VRS and one-time switch to NPS explained — Unified Pension Scheme

The Ministry of Railways today (Wednesday, September 23, 2026) notified Unified Pension Scheme (UPS) rules for its employees who are covered under the National Pension System (NPS). The rules highlight the membership eligibility, lump sum and pension calculation methods, minimum and maximum pension amount, switch from the UPS to the NPS and other key information that Railway employees and pensioners may require from time to time.

UPS subscribers from Railways will get a minimum pension of Rs 10,000 on completion of 10 years of service, and can get a full pension on completion of 25 years of service. They can also opt for the Voluntary Retirement Scheme (VRS) after completing 20 years of service.

The central government started the UPS scheme under the NPS on April 1, 2025. Many central government departments are implementing the UPS one by one, and now the Railways has also opened the pension scheme to its employees.

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