With the introduction of the Unified Pension Scheme (UPS) for central employees in 2025, the Government of India is ensuring financial security and stability for its pensioners. UPS promises a fixed monthly pension to pensioners under the National Pension System (NPS) scheme. Let us find out all the latest updates about this scheme and the benefits involved.
Introduction And Objectives Of The Scheme
The Unified Pension Scheme is effective from 1 April 2025. The scheme aims to provide central employees with a fixed monthly pension based on their length of service. Under UPS, an employee is entitled to a pension of 50% of the average basic salary of the last 12 months. This scheme pertains to employees who come under NPS and have served for 10 years or more.
Pension Eligibility And Benefits
Under UPS, pension is paid to the employees depending on their period of service:
- 10 to 25 years of service: Minimum pension of ₹10,000 per month.
- 25 years of service or more: Pension of 50% of the average basic pay of the last 12 months.
In the event of the death of the pensioner, the family shall receive 60% of the last pension in the form of a family pension. So, the scheme assures financial security in favor of employees as well as their families.
Contribution And Tax Benefits In The Scheme
As for UPS, the employees’ contribution stands at 10% of their basic pay and dearness allowance. The contribution by way of matching grant from the government will be the same. In addition, the government would contribute an extra 8.5% for UPS. Added tax benefits under the UPS also provide a much-needed financial cushion for the employees.
Online Registration And Claim Process
All procedures involved in registration and claiming under UPS have been simplified. The employees may register on the online portal or may submit the physical form. The pensioners can inquire about their pension status and claim status through the online procedure.
Difference Between NPS And UPS
The NPS is based on the market; the returns depend on how well investments perform. The UPS gives a fixed pension, which guarantees security for the employees. Nevertheless, the NPS is more flexible but can have higher risk and potentially higher returns.
Conclusion
The Unified Pension Scheme 2025 is a significant step towards ensuring benefits for the central employees. This scheme provides financial security to the employees and relief for their family members. A fixed monthly pension will serve the needs of a retired employee under UPS, ensure a basic retirement standard of living, and give hope to pensioners. More information about UPS can also be found here.
Also Read: EPFO Pension Update 2025: Major Pension Hike Starting 2025, See Details
