Centre approves Unified Pension Scheme, will benefit 23 lakh employees

New Delhi: Amid ongoing protests by the non-BJP led States regarding a new pension scheme, the Union Cabinet, led by Prime Minister Narendra Modi, on Saturday approved the Unified Pension Scheme (UPS), designed to offer guaranteed pension benefits, family pensions, and a minimum assured pension for government employees.

Under this new scheme, the government will ensure that employees receive a pension equivalent to 50 per cent of their salary. The government’s contribution to the pension scheme has increased from 14 per cent to 18.5 per cent.

Andhra Pradesh’s guaranteed pension scheme, under which, pensioners receive 50 per cent of their last drawn basic salary along with dearness allowance or DA, which is inflation-linked.

According to the Union Minister Ashwani Vaishnav, the scheme will benefit 23 lakh central government employees. The new scheme is set to be implemented on April 1, 2025, allowing employees the flexibility to choose between the National Pension System (NPS) and the Unified Pension Scheme (UPS). This choice will be final for both current and future employees.