New NPS and Pension Charges from October 1: What Subscribers Need to Know

The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a revised charge structure for subscribers of the National Pension System (NPS) and related pension schemes. These changes will take effect from October 1, 2025, impacting millions of government, private sector, and small pension scheme account holders, including NPS Lite, NPS Vatsalya, and Atal Pension Yojana (APY). The updated rules primarily affect account opening, maintenance, and transaction costs, making the system more affordable and transparent for subscribers.

Reduced Costs for Government Employees

Government employees under NPS and Unified Pension Scheme (UPS) will benefit from lower charges. The transaction fees have been completely waived, and account opening or annual maintenance fees have been reduced to nominal amounts.

For accounts with a zero balance, even the annual maintenance charges (AMC) will be completely waived. Additionally, the e-PRAN kit will now be considered the default option at the time of account opening, eliminating unnecessary physical document costs.

NPS Lite and Atal Pension Yojana Subscribers

The NPS Lite and Atal Pension Yojana, designed for low-income and unorganised sector workers, will also incur minimal charges. Transaction fees have been fully waived, ensuring that small account holders do not face any financial burden while contributing to their retirement savings.

Updated Charges for Private Sector and NPS Vatsalya Accounts

For private sector subscribers and NPS Vatsalya account holders, the fee structure differs slightly. Key points include:

• e-PRAN kit charge: ₹18

• Physical PRAN card: ₹40

• Transaction fees: Zero

The annual maintenance charge (AMC) will depend on the account balance, known as the “corpus slab”. This means larger account balances will incur slightly higher AMC, but PFRDA has capped the maximum fee to ensure no subscriber is overcharged.

Option for Lower Charges

PFRDA has clarified that the prescribed charges are upper limits. Central Recordkeeping Agencies (CRAs) can negotiate further reductions with customers, employers, or Points of Presence (PoPs), provided the fee does not fall below the previous slab rates.

Charges Apply Only in Accumulation Phase for UPS

For Unified Pension Scheme (UPS) government subscribers, the new charges apply only during the accumulation phase—the period when contributions are being made. Charges applicable during the decumulation phase (when the subscriber starts receiving pension payouts) will be separately notified by PFRDA in the future.

Transparency and Compliance

Under the new rules, CRAs must clearly display the fee structure on their official websites and mobile applications. Any new services introduced in the future can only recover actual costs incurred, with no additional profit margin allowed.

These reforms aim to make pension schemes more subscriber-friendly, affordable, and transparent, while maintaining strict regulatory compliance. Subscribers are advised to check the updated fee structure on the CRA portals and plan their investments accordingly.

Final Take:
With the October 1, 2025, rollout of these revised charges, NPS and other pension subscribers—government or private—can expect lower transaction and maintenance costs. While some charges will still depend on account balances, the overall impact is reduced financial burden, particularly for low-income participants in schemes like NPS Lite and Atal Pension Yojana.