PM Modi says, Unified Pension Scheme ensures dignity, financial security for employees

Prime Minister Narendra Modi on Saturday praised the government employees for their contributions to the country and said the Unified Pension Scheme (UPS), a new pension scheme announced by the Centre, ensured dignity and financial security for government employees.

"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," he tweeted.

Under the UPS, government employees will get assured pension, family pension and assured minimum pension. The scheme will come into force from April 1, 2025.

The scheme guarantees a pension of 50 per cent of the average basic pay drawn over the last 12 months, provided the employee has completed a minimum of 25 years of service. For those with lesser service, the pension will



be proportionate.

It ensures a family pension of 60 per cent of the pension of the employee immediately before their death. It also guarantees an assured minimum pension of Rs 10,000 per month on superannuation after a minimum of 10 years of service.

About 23 lakh central government employees, who joined service under the National Pension System (NPS), would benefit from the UPS, Railways Minister Ashwini Vaishnaw said.

The NPS is a defined contribution scheme where government employees contribute 10 per cent of their basic salary, and the government matches this contribution with 14 per cent.

Under the UPS, there will be a lump-sum payment at superannuation in addition to gratuity and one-tenth of monthly emolument (pay + DA (Dearness Allowance)) on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of assured pension for employees.