On Saturday, Prime Minister Narendra Modi praised the Central Government’s introduction of the Unified Pension Scheme (UPS), highlighting its role in securing the financial future of government employees. Modi posted on X, expressing pride in the hard work of government employees and underscoring that the UPS ensures their dignity and financial security. He emphasized that the scheme reflects the government’s commitment to employee welfare and a secure future.
The BJP-led central government approved the Unified Pension Scheme, which offers Assured Pension and Assured Family Pension. This decision will benefit approximately 23 lakh central government employees. The Union Cabinet, chaired by Modi, made this significant decision. Information and Broadcasting Minister Ashwini Vaishnaw provided details after the cabinet meeting.
Vaishnaw explained that the UPS includes two main components: the Assured Pension and Assured Family Pension. The Assured Pension will be 50% of the average basic pay over the last 12 months before retirement, provided the employee has a minimum of 25 years of service. For those with less than 25 years but at least 10 years of service, the pension will be proportionate.
The Assured Family Pension will be 60% of the employee’s pension amount before their death. Additionally, the scheme guarantees a minimum pension of Rs 10,000 per month after a minimum of 10 years of service.
Employees will have the option to choose between the National Pension System (NPS) and the Unified Pension Scheme. This new scheme aims to enhance the financial security of government employees and ensure their well-being in retirement.