The Ministry of Finance has asked all central government departments to ensure that National Pension System (NPS) contributions are remitted to the Pension Fund Regulatory and Development Authority (PFRDA) on time. The direction comes after the government noticed delays in crediting NPS contributions in several cases.
In an Office Memorandum (OM) dated July 10, 2026, the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, said that all offices must strictly follow the timelines laid down under the CCS (Implementation of NPS) Rules.
Why has the Finance Ministry issued this OM?
According to the Ministry of Finance, NPS contributions are getting delayed in many cases due to different administrative reasons. The OM reminds departments that the rules already require contributions to be credited within a fixed timeline. If there is a delay, interest has to be paid to the employee’s NPS account.
The ministry has also reminded departments that responsibility for such delays must be fixed.
Interest to be paid for delayed NPS contributions
The OM refers to Rule 8 of the CCS (Implementation of NPS) Rules, which says that if the government’s monthly NPS contribution is credited after the prescribed time, it must be deposited along with interest for the delayed period.
The interest amount must be credited to the employee’s NPS account within 30 days of depositing the contribution.
The rules also say that the interest rate will be the same as the rate notified by the government for Public Provident Fund (PPF) deposits.
Officials may have to bear the cost
The Ministry of Finance has reminded departments that every delay must be examined by the Head of Department or the Chief Controller of Accounts.
If the delay is found to be due to an administrative lapse, the concerned official or officials may have to compensate the government for the interest paid because of the delay. The rules also allow disciplinary action, wherever required.
Other directions issued
The OM also asks Principal Chief Controllers of Accounts (Pr. CCAs), Chief Controllers of Accounts (CCAs) and Controllers of Accounts (CAs) to clear pending amounts lying under the accounting head 8342-117 as per earlier government instructions issued in 2022 and 2024.
The Ministry has asked departments to submit a detailed report on the action taken by July 31, 2026.
What this means for employees
The Office Memorandum does not change the NPS rules. Instead, it reminds departments to follow the existing provisions more strictly. The move is aimed at ensuring that employees’ NPS contributions are credited on time and that they receive interest if there is any delay, as provided under the rules.
Disclaimer: This article is based on the Office Memorandum dated July 10, 2026, issued by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance. It explains the government’s directions and existing provisions under the CCS (Implementation of NPS) Rules.
