INCOME TAX23 Sept 2026
Railway NPS rules 2026: Families can now get up to 100% of an employee’s pay as pension after death in specified cases | Mint
The Ministry of Railways notified new Extraordinary Pension Rules on 10 September 2026, replacing the 1993 rules. For National Pension System (NPS) covered railway employees, families can get family pension of 60% or 100% of pay in specified cases, plus disability benefit. But this depends on the option the employee recorded under Rule 10 of the 2025 NPS rules.
Key Statutory Highlights
- The Railway Services (Extraordinary Pension) Rules, 2026 were notified by the Ministry of Railways on 10 September 2026 and replace the 1993 rules.
- Family pension is 60% of pay for Category B and can be 100% of pay for Categories C and D, and the benefit is not limited to a spouse.
- For NPS-covered employees, family pension, disability pension and constant attendant allowance are payable only if the employee had exercised the relevant option under Rule 10 of the 2025 NPS rules.
Actionable Advice for Taxpayers / Founders:If you are a railway employee covered by NPS, check which option you recorded under Rule 10 of the Railway Services (Implementation of National Pension System) Rules, 2025, and keep that record where your family can find it. It may be worth confirming your position with your department or a CA.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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