New Delhi:
For Central Government employees planning to exit service early in 2026, the rules for Voluntary Retirement (VRS) have become stricter regarding “Notice Withdrawal” and “Pension Calculation” under the new Unified Pension Scheme (UPS). Distinguishing between Resignation (Forfeiture of Service) and VRS (Retention of Pension) is critical to avoiding financial disaster.
Updated on: 16 January 2026 | Verified against CCS (Pension) Rules 2021 & UPS Rules 2025.
Voluntary Retirement Rules 2026: 20 Years Service & Notice Period Guide
Quick Answer
You can opt for Voluntary Retirement after completing 20 Years of Qualifying Service by giving a mandatory 3 Months’ Notice in writing.
• Pension: You get 50% of your last pay (Pro-rata for UPS).
• The Change: The old “5-Year Weightage” (Bonus Service) is NOT applicable for employees retiring under UPS/NPS rules in 2026.
Who Is Eligible
- Permanent Central Govt Employees with 20+ Years of Qualifying Service.
- Employees covered under OPS, NPS, or the new UPS (Unified Pension Scheme).
- Condition: You must not be under suspension or facing departmental inquiries.
Risk: Resignation vs. VRS (The Trap)
Do NOT confuse the two terms. They have opposite financial outcomes:
❌ Resignation: If you “Resign,” you forfeit your past service. You get NO Pension and NO Gratuity (except terminal benefits).
✅ Voluntary Retirement: If you “Retire” under Rule 43, you retain your Pension, Gratuity, and Medical Benefits (CGHS).
The 3-Month Notice Rule
The notice period is mandatory. However, it can be relaxed by the Appointing Authority in special cases.
| Scenario | Rule |
|---|---|
| Standard Notice | 3 Months (90 Days) in writing. |
| Shortfall (Less than 3 Months) | Can be accepted ONLY if the Authority records reasons in writing (e.g., medical emergency). |
| Withdrawal of Notice | Must be requested at least 15 days before the intended date. It is NOT automatic; the Authority can reject the withdrawal. |
Pension Calculation (UPS Impact 2026)
For employees under the Unified Pension Scheme (UPS), the “Assured Pension” is calculated differently if you retire voluntarily before 25 years.
| Service Length | Pension Amount (UPS) |
|---|---|
| 25 Years & Above | Full Assured Pension (50% of Avg Pay). |
| 20 to 24 Years | Pro-Rata Reduction applies.
Formula: (Service Years / 25) × 50% of Pay. |
*Note: For OPS employees (pre-2004), the standard 50% of Last Pay Drawn applies based on 2021 Rules.
Frequently Asked Questions
Does the “5-Year Weightage” rule still exist?
No. Under the modern framework (UPS/NPS) and CCS (Pension) Rules 2021, the automatic addition of 5 bonus years to qualifying service (which existed in the 1972 rules) is generally not applicable for voluntary retirement calculations in 2026.
Can I be denied Voluntary Retirement?
Yes. If you are under suspension or if specific departmental proceedings are pending against you, the government retains the right to withhold permission for VRS.
🇮🇳 हिंदी में सारांश (Summary in Hindi)
स्वैच्छिक सेवानिवृत्ति (VRS) नियम 2026
1. योग्यता: कम से कम 20 साल की नौकरी पूरी होनी चाहिए।
2. नोटिस: 3 महीने का लिखित नोटिस देना अनिवार्य है। इसे वापस (Withdraw) लेने का अधिकार आपको अपने आप नहीं मिलता, यह विभाग की मर्जी पर निर्भर है।
3. पेंशन: UPS कर्मचारियों को 25 साल से कम नौकरी होने पर पेंशन घटकर (Pro-Rata) मिलेगी। पुरानी “5 साल बोनस” वाली स्कीम अब लागू नहीं है।
4. सावधानी: गलती से भी “Resignation” (इस्तीफा) न दें, वरना पूरी पेंशन डूब जाएगी। हमेशा “Voluntary Retirement” शब्द का प्रयोग करें।