What is the Unified Pension Scheme (UPS)?
The Unified Pension Scheme (UPS) is a pension scheme introduced by the Government of India in 2024 as an optional pension scheme along with the National Pension System (NPS) for government employees, effective from April 1, 2025
Key Features of UPS
Assured Pension:
- 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 yearsThis pay is proportionate for lesser service period up to a minimum of 10 years of service
- Ensures a minimum pension of ₹10,000 per month NPS vs UPS: Key Differences in 2025
- Contribution Structure:
- Employee contribution: 10% of (basic pay + Dearness Allowance)
- nt contribution: 10% of (basic pay + Dearness Allowance)
How UPS Differs from NPS
AspectUPSNPSPension GuaranteeOffers a defined pension structure and ensures a minimum pension NPS vs UPS: Key Differences in 2025Market-linked returns, no guaranteed pensionGovernment ContributionGovernment contributions set at 8.5% NPS vs UPS: Key Differences in 2025 (Note: This appears to be outdated as current documents show 10%)14% by government (proposed to be increased to 18% under UPS) Unified Pension Scheme | UPS vs NPS vs OPSRisk FactorBetter for stability and inflation protection UPS vs NPS vs OPS: Understanding the Features and Chose Which One Is BetterOffers more investment options and potentially higher returns, but with higher risk UPS vs NPS vs OPS: Understanding the Features and Chose Which One Is BetterPension CalculationFixed percentage of salary with guaranteed minimumsBased on accumulated corpus and market performanceInflation ProtectionBuilt-in inflation indexationNo guaranteed inflation protection