There have been some major changes in the lives of government employees from April 2025. The most important change has come regarding pensions. The Unified Pension Scheme (UPS) has been implemented in the country since April 1. With this, the central government employees got a new and better pension option. Employees who are already in the National Pension System (NPS) can now also come to UPS if they want. The biggest feature of this scheme is that after retirement, the employees will get an assured monthly pension, which will be fixed on their average salary.
Pension Guarantee
The biggest plus point of the UPS is totally assured monthly pension. If you have worked for 25 years, then after retirement you will get 50 percent of your average basic salary of the last 12 months every month. For example, if your basic salary was 50,000, then you will get a pension of 25,000. And even if you have served for 10 to 25 years, then the minimum pension of 10,000 is fixed. As compared to NPS, where returns depend on the market, UPS gives you stability.

The government is also making a big investment
The government is serious about the financial future of the employees. While the central government used to the contribute 14% in NPS, now the government will provides up to the 18.5% in UPS. That is, the employees will give 10% and the government will give 18.5%. This contribution will make your retirement fund stronger. Also, if you want, you can choose the option of a private fund manager. If you choose a private pension fund manager, you also have investment options. The balance of government trust and freedom of investment makes UPS perfect for those who do not want to compromise on their retirement.
Lump sum on retirement
At the time of retirement, UPS will also give you a big amount which will be based on your last salary and DA. For example, you can get up to Rs 12.5 lakh on a basic salary of Rs 50,000 and 25 years of service. This amount is perfect for home renovation, children’s marriage, or a long trip. A lump sum plus guaranteed pension means double benefit.
Family care too, pension will not stop
UPS not only cares for you but also for your family. If you die after retirement, your spouse will get 60 percent of the pension. That is, on a pension of Rs 25,000, the family will continue to get Rs 15,000. This facility is similar to the Old Pension Scheme (OPS), but in UPS it is included as a guaranteed benefit. It will provide financial support to the families of employees. Even if you die before retirement, your family will get this benefit.
Pensions will increase according to inflation
Nowadays the prices of things increase every year, so why shouldn’t your pension increase? UPS has a Dearness Relief (DR) system, which upgrades your pension according to inflation. Meaning, that as inflation increases, your pension will also increase. There is no such direct benefit in NPS, whereas in UPS it is a thoughtfully added feature.
Let us tell you that the Pension Fund Regulatory and Development Authority (PFRDA) has notified new rules called “Pension Fund Regulatory and Development Authority (Operationalization of Unified Pension Scheme under National Pension System) Regulations, 2025”. This scheme has been brought specifically for those employees of the Central Government who already come under NPS. This includes current employees, newly recruited employees, and those retired employees who are currently under NPS. If a retired employee who had opted for NPS dies, then his legally married wife will also get the right to avail the benefits of UPS.
You can apply for UPS till this date
Employees wishing to avail of these benefits of UPS have to apply within three months from April 1, 2025. That is, if you apply for UPS by 30 June 2025, then you too can become eligible to get these benefits. Newly recruited employees have to decide within 30 days of joining. If the government feels it necessary, this time limit can also be extended. However, once the UPS is selected, it cannot be changed, so it is important to make a decision carefully.