Maharashtra NPS Update: From 50% Salary To Withdrawal Rules, This Is What It Covers

The Maharashtra NPS Update has brought a major pension shift for state government employees covered under the National Pension System. The state finance department’s May 6, 2026 circular makes the Revised National Pension Scheme optional, not automatic, for eligible employees. Those who want to join must submit their option by December 31, 2026. 

This update is gaining attention because it offers an assured pension linked to the last drawn salary, while also adding strict rules on corpus deposit, annuity adjustment, resignation, and earlier withdrawals.

Who Can Opt For The Revised NPS

The revised scheme is mainly for Maharashtra government employees already covered under NPS. It also extends, with suitable changes, to staff of aided educational institutions, agricultural universities, affiliated aided non-government colleges, zilla parishads, and panchayat samitis.

Employees must actively choose the scheme before the deadline. Anyone who does not opt within the given period will continue under the existing NPS framework.

50% Salary Pension And Minimum Pension Rule

The biggest highlight is the 50% pension formula. Employees retiring at the prescribed age after 20 years or more of service can receive a pension equal to 50% of their last drawn salary, along with dearness relief. 

For employees with 10 to 20 years of service, pension will be proportionate to service length. The state has also fixed a minimum pension of Rs 7,500 per month for employees retiring after at least 10 years of service. Employees with less than 10 years of service will not get pension benefits under this revised scheme. 

How Family Pension Will Work

Family pension has also been covered. The family pension will be 60% of the admissible pension, along with dearness relief. This makes the update important not just for retiring employees, but also for their dependents.

Corpus Deposit, Annuity And Withdrawal Conditions

The revised scheme does not remove NPS corpus rules. Employees opting for it must deposit 60% of the accumulated corpus received from PFRDA with the Maharashtra government through the Drawing and Disbursing Officer at retirement.

The remaining 40% will be used to buy an annuity. The annuity amount received from the service provider will be adjusted against the pension payable by the state government.

There is also a strict condition for earlier withdrawals. If an employee has already withdrawn any amount from the NPS corpus, that amount must be repaid with 10% interest. If not repaid, pension entitlement may be reduced proportionately. 

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Resignation, Gratuity And Final Takeaway

Employees who resign from service will not get pension under the revised scheme. They will continue to receive benefits under the existing NPS rules only. Retirement gratuity, however, will apply to employees opting for the revised scheme as per earlier government orders. 

The Centre’s Unified Pension Scheme also offers an assured pension model, but Maharashtra’s revised NPS uses 50% of the last salary, while UPS uses 50% of average basic pay over the last 12 months for eligible central government employees. 

For employees, the key point is simple: this is not automatic. Check eligibility, compare existing NPS benefits, review corpus rules, and submit the option before December 31, 2026.

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