The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) for Government employees.

The salient features of the UPS are:

1. Assured pension: 50% 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 lesser service period upto a minimum of 10 years of service.

2. Assured family pension: @60% of pension of the employee immediately before her/his demise.

3. Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.

4. Inflation indexation: on assured pension, on assured family pension and assured minimum pension

– Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees

6. Lump-sum payment at superannuation in addition to gratuity

-1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service

-This payment will not reduce the quantum of assured pension

Following the approval, the Prime Minister said in a post on X, “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.”