7th pay commission: The new financial year is starting from April 1. Many rules related to common people will change in the new financial year. At the same time, some new rules are also going to be implemented.
One such rule is related to the pension of central employees. Actually, the Unified Pension Scheme (UPS) is going to be implemented from April 1. This is a new pension scheme launched by the Government of India for central employees. It was approved by the Union Cabinet in August 2024, which will now come into effect from April 1, 2025. Its implementation is expected to benefit about 23 lakh central employees.
What is Unified Pension Scheme
The central government has tried to provide an option for central government employees under this scheme. This scheme will be available as an option under the National Pension System (NPS), in which employees can choose between NPS and UPS.
Special things about UPS
There is a provision of fixed pension in this scheme. Employees who have completed 25 years or more of service will get 50% of the average basic salary of the last 12 months before retirement as pension. At the same time, employees with 10 to 25 years of service will get pension in proportion to the service period. Apart from this, employees who have completed a minimum of 10 years of service are guaranteed a pension of at least Rs 10,000 per month.
Family Pension
Talking about family pension, on the death of a central government employee, his family will get 60% of the employee’s pension. Employees will contribute 10% of their basic salary in the scheme. At the same time, the government’s contribution will be 18.5%. Let us tell you that the government will contribute 14% in NPS. This scheme is applicable for central government employees included in NPS, who choose it. At the same time, employees with a minimum of 10 years of service will be entitled to a fixed minimum pension.
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