Unified Pension Scheme (UPS)
Objective: Provide assured, inflation-indexed pension to central government employees as an alternative under NPS. Beneficiaries: Central government employees under NPS; 1.22 lakh employees opted by November 30, 2025. Key Features: - Effective from: April 1, 2025 - Assured pension: 50% of average basic pay of last 12 months (for 25+ years service) - Proportionate pension for 10-25 years of service - Minimum pension: ₹10,000/month (after 10 years of service) - Family pension: 60% of pension to spouse upon retiree's demise - Lump sum: 1/10th of monthly emoluments (pay + DA) per 6 months of service, plus gratuity - Inflation-indexed to All India Consumer Price Index for Industrial Workers (AICPI-IW) - Employee contribution: 10% of Basic Pay + DA; Government: 18.5% (10% matching + 8.5% pool corpus) - Option to opt into UPS, with a one-time one-way switch facility from UPS back to NPS under conditions - Opt-in deadline extended to November 30, 2025 (from September 30, 2025) Eligibility: Central government employees currently under NPS. In news: October-November 2025 — opt-in deadline extended; 1.22 lakh employees opted in.
- Unified Pension Scheme (UPS) effective from 1 April 2025 provides assured inflation-indexed pension to central government employees under NPS
- Assured pension of 50% of average basic pay of last 12 months for 25+ years service; proportionate for 10-25 years; minimum ₹10,000/month after 10 years
- Family pension: 60% of pension to spouse upon retiree's demise; lump sum of 1/10th of monthly emoluments per 6 months of service plus gratuity
- Employee contribution: 10% of Basic Pay + DA; Government contribution: 18.5% (10% matching + 8.5% pool corpus)
- Pension indexed to All India Consumer Price Index for Industrial Workers (AICPI-IW); option to opt into UPS, with a one-time one-way switch facility from UPS back to NPS under conditions
- 1.22 lakh employees opted in by November 30, 2025; opt-in deadline extended from September 30 to November 30, 2025
What is the Unified Pension Scheme (UPS)?
UPS is a central government scheme effective from April 1, 2025, providing assured, inflation-indexed pension to central government employees as an alternative under NPS. It is administered by the Ministry of Finance, Department of Financial Services.
Who is eligible for UPS?
Central government employees currently under NPS are eligible. They can exercise a one-time, one-way switch option from NPS to UPS. By November 30, 2025, about 1.22 lakh employees had opted in.
What is the assured pension under UPS?
The assured pension is 50% of the average basic pay of the last 12 months for employees with 25 or more years of service. Proportionate pension applies for 10 to 25 years of service, with a minimum pension of Rs 10,000 per month after 10 years of service.
What are the contribution rates under UPS?
The employee contributes 10% of Basic Pay plus DA. The government contributes 18.5%, comprising 10% matching contribution and 8.5% towards the pool corpus. Pension is inflation-indexed to the All India Consumer Price Index for Industrial Workers (AICPI-IW).
What family pension and lump sum benefits are available?
Family pension is 60% of the retiree's pension, payable to the spouse upon the retiree's demise. A lump sum equal to one-tenth of monthly emoluments (pay plus DA) per 6 months of service is also paid, along with gratuity.
What was the opt-in deadline for UPS?
The opt-in deadline was extended to November 30, 2025, from the earlier date of September 30, 2025. The extension was announced during October-November 2025 to give eligible NPS employees more time to switch.
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