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Centre approves assured 50% salary to govt employees after retirement: What is Unified Pension Scheme?

The scheme approves an 'Assured Minimum Pension' of Rs 10,000 per month on superannuation after a minimum of 10 years in service.

UPS Unified Pension schemeUnion Minister Ashwini Vaishnaw briefs the media on the schemes approved by the Union Cabinet. (Express photo by Amit Mehra)

The Union Cabinet on Friday approved the Unified Pension Scheme (UPS), which aims to provide ‘Assured Pension’, ‘Assured Family Pension’ and ‘Assured Minimum Pension’ for government employees.

The scheme will be effective from 1 April, 2025, and employees will have the option to choose between the National Pension Scheme (NPS) and the UPS.

Salient features of UPS:

📌 The scheme provides an ‘Assured Pension’, which will be calculated at 50 per cent of the average basic pay drawn over the last 12 months by the employee, prior to superannuation or before their retirement, for a minimum qualifying service of 25 years. The pension will be proportionate for a lesser service period up to a minimum of 10 years of service

📌 UPS also grants an ‘Assured Family Pension’, at 60 per cent of the pension of the employee immediately before their demise.

📌 The scheme approves an ‘Assured Minimum Pension’ of Rs 10,000 per month on superannuation after a minimum of 10 years in service.

📌 Dearness relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) will also be provided on the ‘Assured Pension’, ‘Assured Family Pension’ and ‘Assured Minimum Pension’.

📌 In addition to gratuity, lump-sum payment will be given at superannuation. This will be one-tenth of the monthly emolument (pay + DA) as on the date of superannuation for every completed six months of service. The payment will not reduce the quantum of assured pension.

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