The central government launched the Unified Pension Scheme (UPS) last month to provide a fixed pension to government employees. This scheme has been introduced as an alternative to the National Pension System (NPS). The government announced that employees will have the option to choose between NPS and UPS. Under UPS, employees are required to contribute 10 per cent, while the government will contribute 18.5 per cent.
Along with the announcement of UPS, the government specified that those who work for at least 10 years under this scheme will receive a minimum pension of Rs 10,000. However, to receive the full pension, employees must serve for a minimum of 25 years. For those who work for more than 10 years but less than 25 years, the pension calculation will differ based on the duration of service.
How will you get a pension if you have worked for less than 25 years?
Under UPS, government employees who retire without completing 25 years of service are still eligible to receive a pension. The pension amount for these employees will be calculated based on the duration of their service and salary. Employees who retire after a minimum of 10 years of service will receive a minimum monthly pension of Rs 10,000.
For employees whose service duration is between 10 to 25 years, the pension will be calculated proportionately to their years of service. Additionally, dearness relief may be applied.
Features of the Unified Pension Scheme
- Pension Amount: The pension will be 50% of the average basic salary received in the last 12 months.
- Minimum Eligibility Service: A minimum of 25 years of service is required to receive the full pension.
- Family Pension: Family pension will be 60% of the pension before the employee’s death.
- Minimum Pension: Employees retiring after at least 10 years of service will receive a minimum pension of Rs 10,000 per month.
- Dearness Relief: Will be given on the pension, family pension, and minimum pension.
- Lump Sum Payment: In addition to gratuity, a lump sum payment will be given on retirement.
Avijit Das
A sports journalist driven by passion and dedication, I seamlessly blend my love for writing and sports. Currently with Timesbull, I have honed my craft at Sportskeeda, Cricreads, and Athlete Fortune. I live and breathe sports—whether it's football, cricket, cards, or chess, I'm always up for a challenge. A die-hard...
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