The central government had announced the ‘Unified Pension Scheme‘ (UPS) in early 2025. During this, the central government had said that this pension scheme would be implemented from the next financial year i.e. April 1. This scheme has been launched as an alternative to the National Pension Scheme (NPS) for central employees. Under this, government employees will be given 50 percent of their last salary as a pension.
UPS started after the demand for old pension
The ‘Unified Pension Scheme’ (UPS) has been started after the long-standing demand of the employees, who were appealing for the restoration of the Old Pension Scheme (OPS). Let us tell you that under the old pension scheme, central employees used to get 50 percent of their last salary as a pension. At the same time, now the same benefits will be provided to the employees through UPS.
Under this scheme, government employees will have to contribute 10 percent of their basic salary and dearness allowance (DA), while the government will also contribute 18.5 percent. Apart from this, there will also be a separate pool fund under UPS, in which the government will contribute an additional 8.5 percent. In such a situation, 50 percent of the last salary of central employees will be given as a pension.
Employees will get these benefits
Let us tell you that under this scheme, employees who complete 10 to 25 years of service will be given proportional pension. At the same time, if unfortunately an employee dies, then 60 percent of the pension will be given to his family. Apart from this, a lump sum amount is also given along with gratuity on the retirement of the employee. It is worth noting that employees who have completed at least 10 years of their job will be given a minimum of Rs 10,000 every month as a pension.
Employees who retired before UPS was implemented can also avail of the benefits
It is worth noting that employees who have completed at least 10 years of their job will be given a minimum of Rs 10,000 every month as a pension. At the same time, employees retiring after completing 25 years of service will be eligible for pension payment from the estimated retirement age. Apart from this, employees who retired before the implementation of this scheme can also avail of its benefits. They will be paid pension along with the arrears of the previous period by calculating it based on interest rates of the Public Provident Fund (PPF).