Understand what is Unified Pension Scheme here!!!

Sudha Subbiah

Understand what is Unified Pension Scheme here!!!


The narendra modi government on saturday announced the introduction of Unified Pension Scheme, giving a gift to lakhs of employees and pensioners. The Union cabinet has decided to implement the Unified Pension Scheme from april 1, 2025. Information and Broadcasting minister ashwini Vaishnaw has informed that the New Pension Scheme will also be continued. Employees will have the freedom to choose either of these two schemes. ashwini Vaishnaw has given complete information about the Unified Pension Scheme in 10 points on social media. Let's take a look at it.


Understand all the benefits of UPS in these 10 points

Assured Pension: Employees who have worked for at least 25 years will get 50 percent of their average basic pay of the last 12 months of service as pension.

The government will now deposit 18.5 percent instead of 14 percent in the employee's pension account. However, employees will not have to deposit more money.

Assured Family Pension: If the employee dies during the job, then 60 percent of his basic pay will be given to his family as family pension.


Assured Minimum Pension: Provision of minimum pension has also been made in UPS. Under this, people who have completed 10 years of service will be given a pension of at least Rs 10,000.

Indexation Benefit: Under the new rules, the benefit of indexation benefit will also be available in pension, minimum pension and family pension. Apart from this, Dearness Relief will be linked to All india Consumer Price Index for Industrial Workers.


Gratuity: After completing every 6 months of service, 1/10th of salary and dearness allowance will be added to gratuity. This payment will not reduce the amount of assured pension.

New Pension System (NPS): people who have retired under NPS will also be given the benefit of UPS. Apart from this, they will also get arrears on PPF interest rates.

UPS will be available as an option. Current and future employees will be given a choice once. After choosing one of NPS and UPS, it cannot be changed. With the implementation of UPS, more than 23 lakh employees of the central government will benefit.

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