Central Government Salary Deductions: NPS, UPS, GPF, CGHS, CGEGIS
14 Oct 2026
- Salary
- In-Hand Pay
Quick answer
A central government pay slip carries several deductions, each from a different scheme. This guide explains what each one is, who pays it, at what rate and under which order — NPS and its UPS option, GPF for older appointees, CGHS, the group insurance scheme and income tax — so you can read the gap between gross and in-hand pay.
The gap between a central government employee's gross pay and the amount that reaches the bank is made of several deductions, and each belongs to a different scheme with its own rules. Some depend on when you joined, some on your pay level, some on your group. This guide explains each one; for how they combine with basic pay, DA and HRA into an in-hand figure, see the 7th CPC salary guide.
To see which recruitments are open to you, start from jobs for graduates or 12th pass.
Pension Contribution: NPS, With the UPS Option
Employees appointed on or after 1 January 2004 — the date from which the old GPF rules stop applying, as below — are in the National Pension System (NPS), a contributory scheme. The Department of Financial Services fixed the contributions from 1 April 2019:
The monthly contribution would be 10 percent of the Basic Pay plus Dearness Allowance (DA) to be paid by the employee and 14 percent of the Basic Pay plus DA by the Central Government.
So 10% of basic pay plus DA is deducted from your pay, and the government adds 14% to your account.
From 1 April 2025 the same employees can choose the Unified Pension Scheme (UPS), introduced "as an option under the National Pension System". Under it:
- Your deduction stays at 10%. "The contribution of employees will be 10% of (basic pay + Dearness Allowance)."
- The government matches 10% into your account, and pays "an additional contribution of an estimated 8.5%" into a pooled corpus that supports the assured payout — not into your own account.
- It is a choice. Employees "can choose to either take the Unified Pension Scheme option under the National Pension System or continue with the National Pension System".
The deduction from your pay is the same either way. What differs is the government's side: under NPS it puts 14% into your own account; under UPS it puts 10% into your own account and the rest into the pool that funds the assured pension. What you receive at retirement differs accordingly. The UPS vs NPS calculator compares the two, and the NPS calculator projects the corpus.
GPF: Only for Those Appointed Before 2004
The General Provident Fund is a savings fund for employees under the old pension scheme. The GPF (Central Services) Rules, 1960 say that "nothing contained in these rules shall apply to Government servant appointed on or after the 1st day of January, 2004" — so a recent recruit does not have a GPF deduction at all, unless they were later allowed to move to the old pension scheme, in which case they "shall be required to subscribe" to GPF.
For those who subscribe, the monthly amount is chosen by the employee within limits: "not less than 6 per cent of his emoluments and not more than his total emoluments", with an annual cap set by government. The GPF calculator projects the balance.
CGHS: Health Scheme Contribution by Pay Level
Employees covered by the Central Government Health Scheme pay a flat monthly contribution that depends on pay level. The Ministry of Health's order of January 2017, effective 1 February 2017, set these rates:
| Pay level | Contribution per month |
|---|---|
| Level 1 to 5 | ₹250 |
| Level 6 | ₹450 |
| Level 7 to 11 | ₹650 |
| Level 12 and above | ₹1,000 |
These are the rates set in 2017; check the current figure with your office before relying on them. Pensioners keep paying "the amount that they were subscribing at the time of their retirement".
CGEGIS: Group Insurance, by Group
The Central Government Employees Group Insurance Scheme has two parts: an insurance cover "paid to the families/heirs of those employes who die due to any cause … while in service", and a savings fund paid out when you leave service, for which the Department of Expenditure publishes a quarterly table of benefits. The subscription is by group, in units: "a Group 'C' employee for two units, a Group 'B' employee for four units and a Group 'A' employee for eight units", and the monthly subscription is "Rs.30/-, Rs.60/- and Rs.120/-" for Groups C, B and A.
Former Group D posts, now Group C, pay the Group C rate of ₹30. The Department of Expenditure's table of benefits for July to September 2026 still works on the subscription of ₹15 per unit a month in force since 1 January 1990. Your group is set by your pay level — see the Group A, B, C and D guide.
Income Tax
Income tax is deducted at source from salary every month, on your estimated annual income. Since 1 April 2026 it is governed by the Income-tax Act, 2025, under which the standard deduction for salary is "Rs. 75000 or the salary, whichever is less" in the new tax regime, and "Rs. 50000 or the salary, whichever is less, in any other case". The income tax calculator works out the annual tax and what it means each month.
Other Deductions
A pay slip can carry other deductions that depend on your circumstances rather than a scheme rate — licence fee for government accommodation, recovery of an advance or loan, and others your office makes. These vary from person to person, which is one reason two employees on the same level can take home different amounts.
Frequently Asked Questions
How much is the NPS deduction for central government employees?
10% of basic pay plus DA, deducted from pay. The government contributes 14% under NPS, or 10% to your account plus an estimated 8.5% to a pooled corpus if you opt for UPS.
Does UPS change my monthly deduction?
No. The employee's contribution is 10% of basic pay plus DA under both NPS and UPS.
I joined in 2024. Do I have a GPF deduction?
No. The GPF rules do not apply to employees appointed on or after 1 January 2004, who are in NPS.
How much is the CGHS deduction?
It depends on your pay level: ₹250 for Levels 1 to 5, ₹450 for Level 6, ₹650 for Levels 7 to 11 and ₹1,000 for Level 12 and above, under the 2017 rates. Confirm the current rate with your office.
What is CGEGIS and how much is deducted?
The central government's group insurance scheme. The monthly subscription is ₹30 for Group C, ₹60 for Group B and ₹120 for Group A.
In Summary
The main deductions from a central government salary are the pension contribution — 10% of basic pay plus DA under NPS or its UPS option, for anyone appointed since 2004 — GPF for older appointees, the CGHS contribution by pay level, the CGEGIS subscription by group, and income tax. Each comes from its own scheme and order, and together with personal recoveries they explain the gap between gross and in-hand pay.
Sources
- Department of Financial Services Notification F. No. 1/3/2016-PR, 31 January 2019 — NPS contributions of 10% and 14% from 1 April 2019 (as enclosed with a DoT circular; archived copy)
- Department of Financial Services Notification F. No. FX-1/3/2024-PR, 24 January 2025 — Unified Pension Scheme
- General Provident Fund (Central Services) Rules, 1960 — Rules 4 and 8 (archived compilation)
- DoPPW OM No. 57/05/2021-P&PW(B), 3 March 2023 — GPF for those moving to the old pension scheme
- Ministry of Health and Family Welfare OM No. S.11011/11/2016-CGHS(P)/EHS, 9 January 2017, with the modification of 13 January 2017 — CGHS contribution rates (as enclosed with a DoT circular; archived copy)
- Department of Expenditure OM No. F.7(5)-EV/89, 15 May 1989 — CGEGIS subscription by group
- Department of Expenditure OM No. 7(1)/EV/2023, 6 August 2026 — CGEGIS table of benefits, July–September 2026
- Income-tax Act, 2025 — section 19, standard deduction (Income Tax Department)