Government Approves Unified Pension Scheme for NPS Employees

The Union Cabinet has approved a scheme ensuring an assured pension of 50% of the salary for 23 lakh government employees under the National Pension System (NPS). This scheme, named Unified Pension Scheme (UPS), applies to employees joining after April 1, 2004, and takes effect from April 1, 2025.

The Union Cabinet on Saturday approved a landmark decision to provide an assured 50 per cent of salary as pension for 23 lakh government employees enrolled under the National Pension System (NPS).

Information and Broadcasting Minister Ashwini Vaishnaw announced that the Unified Pension Scheme (UPS), effective April 1, 2025, will allow government employees to receive 50 per cent of their average basic pay drawn over the last 12 months before superannuation as pension.

Employees with at least 25 years of service will be eligible for the full pension, while those with a minimum of 10 years will receive a proportionate amount. The UPS is set to provide significant financial security for retired government employees.

(With inputs from agencies.)