Government Approves Unified Pension Scheme for Central Employees

The Union Cabinet, chaired by Prime Minister Narendra Modi, has announced the approval of the Unified Pension Scheme (UPS) for government employees on Saturday. This new scheme will provide a guaranteed pension amounting to 50 percent of the average basic salary for the last 12 months before retirement for employees who have completed a minimum of 25 years of service.

Union Minister Ashwini Vaishnav informed that approximately 23 lakh central government employees will benefit from this new pension initiative. The implementation of the UPS is set to begin on April 1, 2025, and employees will have the option to choose between the existing National Pension System (NPS) and the new UPS.

A significant feature of the Unified Pension Scheme is that it will ensure a minimum pension of Rs 10,000 per month for government employees after completing a minimum of 10 years of service. Under this scheme, the pensioner’s family will receive 60 percent of the pension amount after their demise, ensuring economic security for families.

The current system requires employees to contribute 10 percent of their salary towards NPS, with the government contributing an additional 14 percent. Under the new UPS, the government will increase its contribution to 18.5 percent for the employees.

The demand for reintroducing the old pension scheme (OPS) has been a topic of discussion since the previous Lok Sabha elections. Various employee organizations have called for the repeal of NPS in favor of the OPS. In the past, they have expressed their concerns through letters to Prime Minister Modi, advocating for a guaranteed pension scheme.

This decision by the government comes after months of negotiations and discussions with employee representatives, highlighting the administration’s commitment to the welfare and financial security of its workforce.