The Unified Pension Scheme (UPS) has been introduced after a long-standing demand of employees, who were appealing for the restoration of the Old Pension Scheme (OPS). Under this scheme, employees get a guarantee of 50 percent of their last salary.
New Delhi: The central government had announced the Unified Pension Scheme (UPS) in the beginning of the year 2025. During this, the central government had said that this pension scheme will be implemented from the beginning of the next financial year i.e. from April 1. This scheme has been started as an alternative to the National Pension Scheme for central employees. Under this, government employees will be given 50 percent of their last salary as pension.
UPS was started after the demand for old pension scheme
Actually, the Unified Pension Scheme (UPS) has been started after a long-standing demand of the employees, who were appealing for the restoration of the Old Pension Scheme (OPS). Let us tell you that under the old pension scheme, central employees used to get 50 percent of their last salary as pension. Now, similar benefits will be provided to the employees through UPS as well.
Government will also contribute
Under this scheme, government employees will have to contribute 10 percent of their basic salary and dearness allowance (DA), while the government will also contribute 14 percent. Note that now it has been increased to 18.5 percent. Apart from this, there will also be a separate pool fund under UPS, in which the government will contribute an additional 8.5 percent. In such a situation, 50 percent of the last salary of central employees will be given as pension.
Employees will get these benefits
Let us tell you that under this scheme, employees who complete 10 to 25 years of service will be given prorated pension. At the same time, if unfortunately an employee dies, 60 percent of the pension will be paid to his family. Apart from this, on retirement of the employee, he gets a lump sum amount along with gratuity. It is worth noting that employees who have completed at least 10 years of their job will be given a minimum of Rs 10,000 every month as pension.
Even retired employees can take advantage of UPS before it is implemented
It is worth noting that employees who have completed at least 10 years of service will be given a minimum of Rs 10,000 as pension every month. At the same time, employees who want to retire after completing 25 years of service will be eligible for pension payment starting from the estimated retirement age. Apart from this, employees who have retired before the implementation of this scheme can also avail its benefits. They will be paid pension along with the arrears of the previous period by calculating it on the basis of Public Provident Fund (PFF) interest rates.
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