On August 24, 2024, the Central Government introduced the Unified Pension Scheme (UPS), set to be implemented from April 1, 2025. This scheme guarantees a fixed pension for government employees based on their contributions. In the event of the employee's death, a family pension will also be provided. Those who have served for at least 10 years but less than 25 years will receive a minimum monthly pension of Rs 10,000.
Following the announcement of the Unified Pension Scheme (UPS), many are curious about the benefits it offers, especially how much pension they would receive upon retirement.
Here’s a breakdown of what retired employees can expect based on different basic salaries.
To be eligible for the pension, an employee must have completed 25 years of service. The pension amount will be 50% of the average basic salary over the last 12 months. The family pension, provided after the employee’s death, will be 60% of the pension amount. For those who have served more than 10 years, the minimum pension will still be Rs 10,000 per month.
Under the UPS, the government will contribute 18.4% of the employee’s basic salary plus DA (Dearness Allowance), while employees will need to contribute 10% of their basic salary plus DA.
- Basic Salary Rs 60,000: After retirement, the employee will receive Rs 30,000 plus DA as pension. The family will get Rs 18,000 plus DA after the employee’s death.
- Basic Salary Rs 70,000: The pension will be Rs 35,000 plus DA, with the family pension being Rs 21,000 plus DA.
