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Centre Approves Unified Pension Scheme, Ensuring 50% of Salary as Pension for Government Employees

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NPS subscribers can choose to switch to the UPS, which offers a guaranteed pension starting from the next financial year. This new scheme will be effective from April 1, 2025, and the benefits, including arrears, will apply to those who retire until March 31, 2025.

The decision to approve the UPS comes amid discussions in several non-BJP-ruled states to revert to the DA-linked Old Pension Scheme (OPS), with some employee organizations also demanding the same.

Unified Pension Scheme

Assured Pension 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 yearsProportionate for lesser service period up to a minimum of 10 years of service
Assured Family Pension 60% of the pension of the employee immediately before her/his demise
Assured Minimum Pension 10, 000 per month on superannuation after a minimum of 10 years of service
Inflation Indexation On assured pension, on assured family pension and assured minimum pension Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of serving employees
Other features Lump-sum payment at superannuation in addition to gratuity* 1/10th of monthly emolument (pay + DA) as on the date of superannuation for every completed six months of service* This payment will not reduce the quantum of assured pension

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