Unified Pension Scheme to benefit 23 lakh govt employees with enhanced retirement security

The central government on Saturday approved the Unified Pension Scheme (UPS) for its employees, a move anticipated to impact 23 lakh workers by enhancing their financial security and stability post-retirement.

Employees with a minimum of 25 years of service will be entitled to an assured pension amounting to 50% of their average basic pay over the last 12 months before retirement.

Those with less than 25 years of service will receive a proportionate pension, with the minimum qualifying service set at 10 years.

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In the unfortunate event of an employee’s death, their spouse will receive a family pension, guaranteed at 60% of the pension that the employee was receiving before their passing and employees with at least 10 years of service are assured a minimum pension of Rs 10,000 per month upon retirement.

Similar to serving employees, retirees under the UPS will receive Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).

 

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In addition to gratuity, employees will receive a lump sum payment upon retirement. This payment will be equivalent to 1/10th of the employee’s monthly emoluments (including pay and Dearness Allowance) as of the date of retirement, for every completed six months of service. Importantly, this lump sum will not reduce the assured pension amount.

The UPS is poised to benefit 23 lakh central government employees immediately. However, this number could potentially increase to 90 lakh if state governments choose to adopt the scheme, extending its benefits to a broader range of government employees across India.

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