Unified Pension Scheme: How Centre aligned fiscal deficit while keeping employees’ interests intact
While the scheme is aimed at ensuring financial security of employees, it also effectively balances the country's economic health.
Following the Union Cabinet’s approval for the Unified Pension Scheme (UPS), Prime Minister Narendra Modi on Saturday said that the scheme will ensure financial security for the Central government employees, emphasizing his government’s commitment to their well being.
“We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future,” Prime Minister Modi wrote on X.
Prime Minister Modi’s remarks came shortly after the Union Cabinet gave its nod to the UPS, which introduces provisions for both Assured Pension and Assured Family Pension.
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Proposed to be effective from 1st April, 2025, the scheme has assured pension, which will be 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation, for a minimum qualifying service of 25 years. This pay is to be proportionate for a lesser service period up to a minimum of 10 years of service.
The UPS will have an assured family pension which will be at 60 per cent of the pension of the employee immediately before her/his demise. It will also have assured minimum pension which will be at Rs 10,000 per month on superannuation after minimum 10 years of service.
The scheme will have inflation indexation, on assured pension, on assured family pension and on assured minimum pension, Information and Broadcasting Minister Ashwini Vaishnaw told newspersons after the Cabinet meeting.
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