What is Unified Pension Scheme (UPS): 5 things central government employees should know

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) for central government employees on Saturday. This scheme will be effective from April 1, 2025, and will benefit 23 lakh central government employees.

The Central Government has launched the Unified Pension Scheme (UPS), which provides government workers with a steady pension based on their length of service and most recent basic salary drawn. According to a Press Information Bureau release, the scheme has five important features.

For a minimum qualifying service of 25 years, 50% of the average basic salary drawn for the past 12 months prior to superannuation. Up to a minimum of ten years of service, this compensation is to be commensurate with shorter service periods.

60% of pension of the employee immediately before her/his demise.

After at least ten years of service, @10,000 per month in superannuation.

On assured pension, on assured family pension and assured minimum pension. Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees.

1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service. This payment does not diminish the quantum of secured pension.