7th pay commission: Recently, the central government made an important announcement regarding pension for its employees. Under this, the Unified Pension Scheme (UPS) was launched as an alternative to the New Pension Scheme (NPS).
There are many such features in this new pension scheme, which are expected to benefit the employees greatly. One such feature is the contribution from the government.
Government’s contribution
Under the Integrated Pension Scheme, the employee’s contribution for pension will be 10% of the basic salary and DA. The government will contribute 18.5%. The government contributes 14% to NPS, which has been increased to 18%. In this new pension scheme, provisions have also been made for family pension, guaranteed minimum pension and lump sum payment after retirement. Please note that the employees will have the option to choose between NPS and UPS only once.
How many employees benefit
Let us tell you that in the new scheme, the employee will get pension equal to 50 percent of the average salary of the last year after 25 years of service. Government employees who joined the service after January 2004 are covered under this scheme. 30 lakh central employees are expected to benefit from this scheme and if the state governments implement UPS, then a total of 90 lakh employees will be able to benefit from it.
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How much pension after 10 years of service
The pension will be paid proportionately for a minimum service period of 10 years. The New Pension Scheme also guarantees a minimum pension of Rs 10,000 per month on retirement after a minimum service of 10 years. Employees will be eligible for a lump sum amount in addition to gratuity at the time of retirement.
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