The Central Government has implemented Unified Pension Scheme (UPS) for its employees from 1 April 2025. The scheme is the revised form of the new pension scheme (NPS), which has been started with the aim of ensuring definite pension. For a long time, employees were demanding the restoration of the old pension scheme (OPS), on the basis of which UPS has been recommended.
UPS vs NPS: What is the difference?
-
The amount received after retirement in NPS is based on the market and is not certain.
-
In UPS, eligible employees will be given a 50 percent pension of the average basic salary of 12 months before retirement.
However, the eligibility of pension in UPS is based on certain conditions.
Eligibility for UPS
-
The employee has completed at least 10 years of service.
-
If an employee takes voluntary retirement after 25 years of service, he will still get the benefit of pension.
-
In such cases the pension will start from the date when the employee was retired.
-
In the event of death, the family will get 60 percent of the final pension as a family pension.
Features of UPS
-
The scheme is available to both new and existing employees of the central government.
-
Under the scheme, the employee will have to contribute 10 percent of basic salary and dearness allowance every month.
-
Employees who want to take advantage of this scheme will have to apply within 30 days from the date of appointment.
-
Employees who have been working for more than 12 months can also register for UPS within the next three months.
How will 50 percent pension be calculated?
The UPS has been designed in such a way that the eligible employee can get 50 percent of the average basic salary of the last 12 months at the time of retirement as a monthly pension.
-
This full 50 percent pension will be given only to those employees who have completed at least 25 years of service.
-
If the service period is less than 25 years, pension will be given proportionately.
-
Employees who have served 10 years or more will be guaranteed a minimum pension of Rs 10,000 monthly.
- SBI Net Banking blockage, mobile banking and ATM services also affected
The post Unified Pension Scheme came into force from 1 April 2025, know what are the new rules and who will get the benefit first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
