Unified Pension Scheme Gets Approval, Government Employees To Get Assured 50% Salary As Pension

The Union Cabinet approved an assured 50% of salary as pension for 23 lakh government employees who joined service under the National Pension System on Saturday.

The National Pension System is applicable for government employees joining the service after April 1, 2004. It was based on the premise of contribution rather than defined benefit applicable for employees prior to the NPS.

The UPS ensures dignity and financial security for government employees, aligning with the government's commitment to their well-being and secure future, said Prime Minister Narendra Modi.

"We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future," Modi said in a post on X, formerly Twitter.

Under the UPS, government employees will now be eligible to get 50% of the average basic pay drawn over the last 12 months before the superannuation as pension, Union Information and Broadcasting Minister Ashwini Vaishnaw said.

For this full pension, the eligibility service length will be 25 years, he said.

However, it would be proportionate for a lesser service period up to a minimum of 10 years of service, the minister said.

NPS subscribers can now opt for the UPS, which offers assured pension applicable from the beginning of the next financial year.

(With inputs from PTI).