NEW DELHI: In current scheme, employees contribute 10% and government 14%. The UPS will raise government’s share to 18%.
In a significant announcement made ahead of assembly elections in one state and a Union Territory, the government has unveiled the Union Pension Scheme (UPS), despite ongoing protests from several non-BJP-ruled states regarding the New Pension Scheme (NPS). Union Minister Ashwini Vaishnaw stated, “This scheme will benefit 23 lakh central government employees.” The UPS is set to take effect on April 1, 2025, giving employees the option to choose between the NPS or the UPS.
The UPS, approved by the Union Cabinet chaired by Prime Minister Narendra Modi, is designed to provide assured pension, family pension, and a guaranteed minimum pension to government employees. Details of the UPS include:
* Assured Pension: Guarantees 50 percent of the average basic salary from the last 12 months before retirement for employees who have completed a minimum of 25 years of service.
* Family Pension: Ensures that in the event of the pensioner’s death, their family will receive 60 percent of the pension amount the deceased was receiving at the time of death.
* Minimum Pension: Provides a minimum pension of Rs 10,000 per month for retirees who have served a minimum of 10 years.
Under the current pension scheme, employees contribute 10 percent of their salary while the central government contributes 14 percent. The UPS will increase the government’s contribution to 18 percent. Vaishnaw noted, “Some central employees met with the Prime Minister today and expressed their support for the UPS.”
The employees will have the choice to continue with the National Pension Scheme or UPS.
Prime Minister Narendra Modi on Saturday met with a delegation from staff side of the Joint Consultative Machinery for Central Government employees.
The meeting coincided with the BJP-led central government’s approval of the Unified Pension Scheme (UPS), which includes Assured Pension and Assured Family Pension.
National Council (Joint Consultative Machinery) Secretary (Staff Side) Shiv Gopal Mishra, while speaking about their meeting with PM Modi, said that after days of protest, PM Modi acknowledged the concerns of the National Council and called a meeting with the Standing Committee.
“Overall, after many days of protest, our Prime Minister has acknowledged our concerns and today called a meeting with our National Council Standing Committee… He also assured that in the future, whenever there is a need, the entire government will be available for its employees,” he said.
“Today… for the first time in India, a Prime Minister has invited the National Council Joint Consultative Machinery Staff Side for a discussion. This is a very proud moment for the 3.2 million Central government employees we represent,” he added.
“In the future, those who retire or have already retired will receive 50 per cent of their salary, and Dearness Allowance will also be provided. The family pension will also see a 60 percent Dearness Allowance. Additionally, there is a proposal to increase the minimum pension to Rs 10,000,” he said.