NPS withdrawal rules 2026: 80% lump sum for private subscribers, 60% for government staff, ₹8 lakh and ₹12 lakh slabs, partial withdrawal and premature exit
Under PFRDA’s amended exit rules (notified December 2025), non-government NPS subscribers (All Citizen and Corporate) can now take up to 80% as lump sum at normal exit and must use at least 20% for an annuity — earlier it was 60:40. If your corpus is ₹8 lakh or less, you can withdraw all of it. Between ₹8–12 lakh, take up to ₹6 lakh lump sum and the rest as annuity or systematic withdrawal over 6+ years. Government subscribers stay at 60% lump sum / 40% annuity. Partial withdrawal: up to 25% of your own contributions, 4 times before 60, with a 4-year gap, after 3 years in NPS.
Key facts Last verified: 15 Oct 2026
| Item | Details | Source |
|---|---|---|
| Rules amended | PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 — amendments notified 19 Dec 2025 | PIB — Ministry of Finance, 19 Dec 2025 |
| Normal exit — non-government | Up to 80% lump sum, at least 20% annuity (was 60:40) | PIB, 19 Dec 2025 |
| Small corpus | ≤ ₹8 lakh: 100% lump sum or SLW/SUR; ₹8–12 lakh: up to ₹6 lakh lump sum + balance as annuity or SUR for at least 6 years | NPS Trust — Normal Exit |
| Normal exit — government | Up to 60% lump sum, at least 40% annuity (unchanged); same ₹8 lakh / ₹12 lakh slabs | NPS Trust — Normal Exit |
| Partial withdrawal | After 3 years; up to 25% of own contributions; 4 times before 60/superannuation with 4-year gap; after 60, 3-year gap | NPS Trust — Partial Withdrawal |
| Premature exit | Up to 20% lump sum, at least 80% annuity; corpus ≤ ₹5 lakh: 100% lump sum (government and non-government) | PIB, 19 Dec 2025 |
| All Citizen vesting | Normal exit after 15 years of subscription or age 60, whichever is earlier; 5-year lock-in removed | PIB, 19 Dec 2025 |
Vikas, 61, from Thane, has ₹30 lakh in NPS from his private-sector job. Under the old rules he could take only ₹18 lakh (60%) and had to buy an annuity with ₹12 lakh. Under the new rules he can take up to ₹24 lakh (80%) and buy an annuity with just ₹6 lakh (20%). His neighbour, a retired Central Government clerk with the same corpus, still gets 60:40 — the new 80% rule is for non-government subscribers.
Normal exit: how much can you take?
Normal exit = for the All Citizen model, after 15 years in NPS or age 60, whichever is earlier; for government and corporate subscribers, at retirement/superannuation.
| Your corpus at exit | Non-government (All Citizen, Corporate) | Government (Central/State staff) |
|---|---|---|
| Up to ₹8 lakh | 100% lump sum, or systematic withdrawal (SLW/SUR) | 100% lump sum, or SLW/SUR |
| ₹8 lakh – ₹12 lakh | Up to ₹6 lakh lump sum + balance as annuity or SUR for at least 6 years — or 80:20 | Up to ₹6 lakh lump sum + balance as annuity or SUR for at least 6 years — or 60:40 |
| Above ₹12 lakh | Up to 80% lump sum, at least 20% annuity | Up to 60% lump sum, at least 40% annuity |
| Joined NPS after 60 | Corpus ≤ ₹12 lakh: 100%; above: 80:20 | — |
SLW = Systematic Lumpsum Withdrawal (take the lump-sum part in instalments). SUR = Systematic Unit Withdrawal (periodic payouts from units still invested).
Example: ₹30 lakh corpus
| Non-government | Government | |
|---|---|---|
| Maximum lump sum | ₹24 lakh (80%) | ₹18 lakh (60%) |
| Minimum annuity purchase | ₹6 lakh (20%) | ₹12 lakh (40%) |
Our worked example. The annuity gives a monthly pension for life; the rate depends on the annuity provider and plan you choose.
Partial withdrawal (before you exit)
- You must be in NPS for at least 3 years.
- Each time, withdraw up to 25% of your own contributions (not employer’s, not returns).
- Up to 4 times before age 60 / superannuation, with a 4-year gap between withdrawals in the same account.
- After 60 (if you stay invested): no count limit, but a 3-year gap.
Allowed reasons:
- Higher education or marriage of your children (including legally adopted)
- One-time purchase or construction of a house in your name or jointly with spouse — not allowed if you already own a house (other than ancestral)
- Medical treatment or hospitalisation of you, spouse, children or parents — no fixed disease list any more
- Disability or incapacitation expenses
- Repaying a loan taken from a regulated lender against a lien on your NPS account
Removed: withdrawals for skill development and for starting a business. Submit the request with documents to your POP / nodal office; it is processed through the CRA.
Premature exit (before normal exit)
| Non-government | Government | |
|---|---|---|
| Corpus up to ₹5 lakh | 100% lump sum, or SLW/SUR | 100% lump sum, or SLW/SUR |
| Otherwise | Up to 20% lump sum, at least 80% annuity | Up to 20% lump sum, at least 80% annuity |
The All Citizen model no longer has a 5-year lock-in for premature exit.
Other changes worth knowing
- Age limit to stay in NPS raised to 85; you continue automatically — the old 15-day advance intimation is gone.
- Loans against NPS: a regulated lender can mark a lien up to 25% of your own contribution.
- On death (non-government): nominee gets 100% lump sum (or can choose annuity / SLW / SUR).
- Tier-II accounts: withdraw any time (except the Central Government Tier-II Tax Saver lock-in).
Tax is a separate question. These are PFRDA’s withdrawal rules — how much of the lump sum is tax-free is decided by the Income-tax Act. Don’t assume the whole 80% is tax-free; check the current tax rules or ask a tax professional before you withdraw a large amount.
Comparing NPS with the Unified Pension Scheme as a central employee? See UPS vs NPS calculator.
Frequently asked questions
Can I withdraw 80% of NPS at 60?
Yes, if you are a non-government subscriber (All Citizen or Corporate) with a corpus above ₹12 lakh: up to 80% as lump sum and at least 20% for an annuity. Government subscribers remain at 60% lump sum and 40% annuity.
Can I withdraw my full NPS amount?
Yes, if your corpus at normal exit is ₹8 lakh or less (₹12 lakh or less if you joined after 60). For premature exit, you can take 100% only if the corpus is ₹5 lakh or less.
How many times can I make a partial withdrawal from NPS?
Up to 4 times before age 60 or superannuation, with at least 4 years between withdrawals, each up to 25% of your own contributions, after completing 3 years in NPS.
Can I withdraw NPS for medical treatment?
Yes. Partial withdrawal is allowed for medical treatment or hospitalisation of yourself, spouse, children or parents — the old list of specified illnesses has been replaced by this broader purpose.
When did the new NPS withdrawal rules start?
PFRDA notified the amended Exits and Withdrawals Regulations in December 2025 (announced by the Finance Ministry on 19 December 2025).
Do the 80% rules apply to central government employees?
No. For government sector subscribers the normal exit split stays at up to 60% lump sum and at least 40% annuity, with the same ₹8 lakh and ₹12 lakh small-corpus slabs.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- PIB — Key amendments in NPS exit regulationsFull old vs new table
- NPS Trust — Normal ExitCurrent slabs, government & non-government
- NPS Trust — Partial WithdrawalConditions and reasons
- PFRDA — RegulationsExits and Withdrawals Regulations text
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