Govt approves Unified Pension Scheme, to benefit 2.3 mn central employees | Economy & Policy News

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Union Minister Ashwini Vaishnav (Photo: PTI)

2 min read Last Updated : Aug 24 2024 | 8:35 PM IS

Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday, approved assured 50 per cent of salary as pension for govt employees under Unified Pension Scheme (UPS).

“Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension…50% assured pension is the first pillar of the scheme…second pillar will be assured family pension…About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)…There will be an option for the employees to opt between NPS and UPS…,” announced Union Minister Ashwini Vaishnaw ahead of assembly elections in one state and a Union Territory this year.

The three pillars of UPS

50% assured pension scheme assures 50 per cent of the average basic salary for the last 12 months before retirement as pension for government employees who complete a minimum of 25 years in service, said Vaishnaw.

Under the family pension schemethe pensioner’s family will get 60 per cent of the pension received at their time of death.

The minimum pension scheme assures Rs 10,000 per month after retirement for for government employees after minimum 10 years of service.

According to the current pension scheme, the employees contribute 10 per cent while the central government contributes 14 per cent, which would be increased to 18 per cent with the UPS.

First Published: Aug 24 2024 | 7:58 PM IS

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The three pillars of UPS

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