Government Unveils New Pension Scheme for 23 Lakh Employees

New Delhi- The Union Cabinet has approved the Unified Pension Scheme (UPS) for 23 lakh government employees. According to the Information and Broadcasting Minister, Ashwini Vaishnaw, the first pillar of the scheme will ensure 50 percent of the average basic pay of the employees at the time of superannuation.

Under the second pillar of the scheme, the family members of the employees will be guaranteed 60 percent of the pension. The government has also decided to give a minimum pension of 10 thousand rupees to the employees on superannuation.

The Union Cabinet has also decided to implement inflation indexation on the assured pension, the pension of the family members, and the minimum pension. The cabinet also decided to give lump sum payment at the time of superannuation in addition to other incentives.

According to experts, about 23 lakh central government employees will benefit from this scheme. The scheme will come into effect from 1st April 2025. The government has decided to start this scheme for only 23 lakh government employees for the time being.

Information and Broadcasting Minister Ashwini Vaishnaw said that this is the first time that the Joint Consultative Machinery (JCM) has been invited by the Prime Minister. The JCM is an organization of government employees' organizations.

After the cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said that the first pillar of the scheme ensures 50 percent of the average basic pay of the employees at the time of superannuation for a minimum qualifying service of 25 years. The second pillar guarantees that 60 percent of the pension is assured for the family after the employee's demise. There will be assured minimum pension at least 10 thousand rupees per month on superannuation after minimum 10 years of service.