Centre Approves 50% Salary To Govt Employees After Retirement: What Is Unified Pension Scheme?

The Union Cabinet has approved the Unified Pension Scheme (UPS), set to be implemented from April 1, 2025. This new scheme offers government employees options between the National Pension Scheme (NPS) and the UPS, which includes several key features:

📌 Assured Pension: Employees will receive a pension equivalent to 50% of their average basic pay over the last 12 months before retirement, given a minimum of 25 years of service. For shorter service, pensions will be proportionate, starting from a minimum of 10 years.

📌 Assured Family Pension: In the event of an employee’s death, the family will receive 60% of the pension amount.

📌 Assured Minimum Pension: A minimum pension of Rs 10,000 per month will be guaranteed for those with at least 10 years of service.

📌 Dearness Relief: The pension amounts will be adjusted based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).

📌 Lump-Sum Payment: Upon retirement, employees will receive a lump-sum payment of one-tenth of their monthly emolument for every six months of completed service. This will be in addition to their gratuity and will not affect the assured pension.