The Government of India has announced an important pension scheme for central and state employees, called Unified Pension Scheme (UPS). The scheme is scheduled to come into force from 1 April 2025 and its main objective is to provide sure and stable pension to employees. Under this scheme, employees can switch to the National Pension System (NPS) and get a certain pension.
The biggest advantage of this scheme is that it protects employees from market -based risk and provides them a guaranteed pension. This scheme will be particularly beneficial for employees who want financial security after their retirement. Under this scheme, employees will get 50% pension of their last 12 months average basic salary, provided they have completed at least 25 years of service.
Detailed information of Unified Pension Scheme
| Speciality | Description |
| Effective date | 1 April 2025 |
| Beneficiary | Central government employees who are registered under NPS |
| Pension amount | 50% of the last 12 months average basic salary |
| Minimum pension | ₹ 10,000 per month (for service more than 10 years) |
| Family pension | Family will get 60% pension on the death of pensioner |
| Employee contribution | Basic salary and 10% of DA |
| Government contribution | Basic Salary and 18.5% of DA |
Main benefits of pension scheme
- Guaranteed Pension: Employees will get 50% pension of their last 12 months average basic salary.
- Family Pension: On the death of the pensioner, the family will get 60% pension.
- Minimum pension: Employees with service more than 10 years will get a minimum pension of ₹ 10,000 per month.
- Inflation index: The pension amount will be adjusted according to inflation.
- Lump Sama Payment: A lump equal payment will also be given on retirement.
Qualification and procedure for pension scheme
Qualification criteria
- Service period: Service of at least 10 years is required.
- NPS Registration: Employee must be registered under NPS.
- Option Selection: Employees can switch to UPS from NPS.
Process
- Option Selection: Employee must choose the option of UPS.
- Contribution: Employee will have to contribute basic salary and 10% of DA.
- Government contribution: The government will contribute 18.5% of basic salary and DA.
Options for state governments
State governments can also adopt unified pension scheme for their employees. If the state governments adopt this scheme, then the number of its beneficiaries can reach about 90 lakhs.
financial impact
The implementation of this scheme will increase the financial burden on the government, but it will provide financial security to the employees. The annual expenditure in the first year is expected to increase by about ₹ 6,250 crore.
conclusion
Unified Pension Scheme is an important step for central and state government employees, which provides them sure and stable pension. The scheme protects employees from market -based risks and ensures financial security after their retirement.
Disclaimer: This article is written only for the purpose of providing information. The reality of Unified Pension Scheme and its implementation dates are based on government notifications. The scheme is real and is scheduled to come into force from 1 April 2025.
