UPS scheme is going to be implemented from April 1, know how much and who will get the benefit

New Delhi: The central government is going to launch the Integrated Pension Scheme or Unified Pension Scheme from April 1, it is especially beneficial for those employees who want a fixed income after retirement. It is worth noting that on January 24, the government officially announced the Unified Pension Scheme as an option of National Pension System and now this scheme will be implemented from April 1, 2025. UPS will be applicable only for government employees who are already registered under NPS. Government employees will have the option to choose either NPS or UPS. Let’s know how to get its benefits?

What is Unified Pension Scheme?
First of all, let’s know what is UPS? So let us tell you that under UPS, now central employees will be given a fixed pension, which will be 50% of the average basic salary of the last 12 months before the retirement of the employee. To get this pension, the employee will have to serve for at least 25 years. At the same time, if the employee dies, then the family will also continue to get a fixed pension, which will be 60 percent of the pension he gets. Apart from this, minimum assured pension will also be given, which means that those who work for 10 years will get a pension of at least Rs 10,000.

How much will be the government contribution?
In the New Pension Scheme, the employee has to contribute 10 percent of his basic salary and the government contribution in this is 14 percent. At the same time, in the UPS going to be implemented from April 1, 2025, this contribution of the government will be 18.5 percent of the basic salary of the employee. With the implementation of this unified pension scheme, about 23 lakh employees are going to benefit and the additional burden on the government treasury will be Rs 6250 crore in the first year.

Pension will increase on the basis of inflation
Indexation has also been added under the Unified Pension Scheme. This means that the pension of retired employees will keep increasing according to inflation. This increase will be added to the pension as inflation relief. It will be calculated on the basis of All India Consumer Price Index for Industrial Workers. At the same time, a lump sum amount will also be given on retirement.

Who will get the benefit of this scheme?
This unified pension scheme for central employees covered under NPS was notified by the government on 25 January 2025. The Unified Pension Scheme will be applicable to such employees of the Central Government, who come under NPS i.e. National Pension Scheme and choose the option of UPS under it. People choosing UPS will not be entitled to any other policy concession, policy change, financial benefit.