A Unified Pension Scheme has been implemented for the government employees of the country. The Central Government has announced the launch of the Unified Pension Scheme (UPS) for government employees. This scheme will be implemented from April 1, 2025. Under this scheme, government employees will be provided with a pension after retirement. UPS scheme will apply to those employees who are covered under the National Pension System. Today we are going to provide you with more information about the Unified Pension Scheme. Stay tuned to the article till the end to get more information.
About Unified Pension Scheme 2025
Unified Pension Scheme has been prepared under the Old Pension Scheme (OPS) and NPS. The Central Government has decided to implement this scheme from April 1, 2025. Under UPS, retired employees will get 50% of the last salary as pension. In which employees will also get benefits like dearness allowance, family pension and lump sum payment. Only employees covered under NPS will be given the option to choose Unified Pension scheme. Under this scheme, employees with less than 25 years of service but more than 10 years will get pension on a proportionate basis. This scheme has been prepared keeping in mind the financial condition of the employees after retirement.
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The Objective of the Unified Pension Scheme
The main objective of the Unified Pension Scheme is to provide a pension amount of 50% of the last salary to the government employees after retirement. So that the employees can live their lives comfortably. This scheme will be implemented from April 1, 2025. This scheme will apply to those employees who are covered under the National Pension System. UPS scheme has been prepared keeping in mind the financial condition of the employees after retirement.
Key Highlights of the Unified Pension Scheme 2025
| Name of the scheme | Unified Pension Scheme (UPS) |
| Announced by | Governments of India |
| Announcement Date | 24 August 2024 |
| Implementation Date | 1 April 2025 |
| Beneficiaries | Central Government employees |
| Benefits | Rs. 10,000 per month upon superannuation after a minimum of 10 years of service |
| Employee Contribution | 10% of basic salary + dearness allowance |
| Employer Contribution | 18.5% of basic salary + dearness allowance |
| Guaranteed Pension | 50% of average basic pay for 25+ years of service |
The family will get benefits in case of death
Under this scheme, on the death of the employee, 60% of the pension will be given to his family as family pension. Apart from gratuity, employees will also get a lump sum payment at the time of retirement. If an employee works in the Central Government for at least 10 years, he will get a minimum pension of Rs 10,000 per month.
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Benefits of the Unified Pension Scheme 2025
- Full assured payment will be calculated at the rate of 50% of the average basic pay of the 12 months preceding retirement.
- This fully assured payment is applicable after a minimum of 25 years of qualifying service.
- If the qualifying service period is less than 25 years, proportionate payment will be given.
- Minimum guaranteed payout of Rs. Rs 10,000 per month is assured if retirement occurs after ten or more years of qualifying service.
- The government contributes 18.5% of an employee’s basic salary to the pension fund
- In cases of voluntary retirement after a minimum of 25 years of qualifying service, the assured payment will commence from the date on which the employee would have retired if he continued in service.
Unified Pension Scheme Eligibility Criteria
- Government employees who have completed at least 10 years of service are eligible for a fixed pension amount.
- Government employees who have completed at least 25 years of service are eligible to receive one percent of their average basic pay as pension.
- The Government employees who are covered under the National Pension System (NPS) and who opt for Voluntary Retirement Scheme (VRS) under NPS.
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Advantages & Disadvantages of Unified Pension Scheme
- The Unified Pension Scheme will be fully implemented from April 1, 2025.
- Employees retiring from service earlier will also be given the option to avail the benefits of this scheme.
- A top-up payment process will be implemented for them so that they can join the new pension.
- Under this scheme, there will be an opportunity to choose between NPS and UPS.
- With this scheme, employees will be guaranteed a fixed and secure pension.
- This step will play an important role in securing the economic future of the employees as well as combining the benefits of both OPS and NPS.
- If the pensioner dies, his widow/widower will get 60% of the pension.
- UPS benefits will not be available to those employees who resign or are removed from service or dismissed.
FAQs
The UPS scheme will come into effect from April 1, 2025.
At present, the UPS scheme is only for government employees. Thus, private employees are not covered under UPS.
The UPS pension rules include a guaranteed pension of 50% of the average basic pay for Employees with 25+ years of service. Employees with 10 + years of service are guaranteed a minimum pension of Rs. 10000 per month.
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