Government Launches Unified Pension Scheme for Central Employees

On August 25, 2024, the Union Cabinet, led by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS), a significant initiative aimed at enhancing pension benefits for central government employees.

This new scheme will directly benefit approximately 2.3 million central government employees, and the reach could extend to around 9 million beneficiaries if similar provisions are adopted by state governments.

Information and Broadcasting Minister Ashwini Vaishnaw detailed that the UPS will be effective from April 1, 2025, ensuring that employees with a minimum of 25 years of service receive a pension of 50% of their average basic pay over the last 12 months prior to retirement. For those with service spanning 10 to 25 years, the pension will be calculated proportionately.

The UPS guarantees a family pension that is equivalent to 60% of the employee’s pension immediately before their death. Additionally, it ensures a minimum pension of Rs 10,000 per month for employees who have completed at least 10 years of service.

Moreover, the scheme will incorporate inflation indexation and a lump-sum payment upon superannuation, further emphasizing the government’s commitment to the welfare of its employees.

Following the Cabinet’s announcement, the Chairman of Leh Autonomous Hill Development Council, Adv. Tashi Gyalson, expressed gratitude towards Prime Minister Narendra Modi and the Cabinet for their decisive action in enabling this historic initiative.

The introduction of this scheme represents a progressive step in modernizing and enhancing retirement benefits for government employees, ensuring a more secure and dignified retirement for them and their families.