The union cabinet on Saturday approved Unified Pension Scheme (UPS), by which almost 23 lakh government employees will be benefitted. UPS will serve as an alternative of National Pension System (NPS). PM Narendra Modi said on X about the scheme “The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future.”

The scheme can be availed from April 1, 2025. Central government employees will get options between UPS and NPS. Current NPS subscribers will get chance to switch from UPS to NPS. Central Government employees servicing from April 1 2004 will be eligible for UPS.

The Unified Pension Scheme (UPS) will serve the following provisions:

Assured Pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years

Proportionate for lesser service up to a minimum of 10 years of service

Assured Family Pension @60% of pension of the employee immediately before her/his demise

Assured Minimum Pension @10,000 per month on superannuation after minimum 10 years of service

Inflation Indexation: On assured pension, on assured family pension and assured minimum pension Dearness relief based on All India Consumer Price Index for Industrial Workers (AICPI-W) as in case of serving employees

Lump-sum payment at superannuation in addition to gratuity

1/10th of monthly emolument (pay + DA) as on the date of superannuation for every completed six months of service

This payment will not reduce the quantum of assured pension.