Along with the announcement of UPS, the central government had said that those who work for at least 10 years under this scheme will be given a minimum pension of Rs 10,000. At the same time, to get the full pension, one will have to serve for a minimum of 25 years.
The central government launched the Unified Pension Scheme (UPS) last month to provide fixed pension to government employees. This scheme has been introduced as an alternative to the National Pension System (NPS). The central government had said that government employees will have the option to choose between NPS and UPS. Employees have to contribute 10 percent in UPS, while the government will contribute 18.5 percent.
Along with the announcement of UPS, the central government had said that those who work for at least 10 years under this scheme will be given a minimum pension of Rs 10,000. At the same time, to get the full pension, one will have to serve for a minimum of 25 years. But if someone works for more than 10 years and less than 25 years under this scheme, then how will the pension be calculated? Let’s know.
How will you get pension if you work for less than 25 years?
Under UPS, employees who retire without completing 25 years of service are also eligible to get pension. Government employees who have served for less than 25 years will be given pension after retirement on an estimated basis, which will depend on their service period and salary. The minimum monthly pension benefit under this scheme is Rs 10,000 for those who retire after a minimum of ten years of service.
For employees whose service is between 10 and 25 years, their pension amount will be calculated proportionately according to their tenure. Apart from this, dearness relief can also be given in it.
Features of Unified Pension Scheme
- Pension amount: 50% of the average basic salary received in the last 12 months.
- Minimum qualifying service: Minimum 25 years of service is mandatory.
- With a minimum of 10 years of service, pension based on calculation for service period less than 25 years
- Family pension is given at the rate of 60% of the pension immediately before the death of the employee.
- Rs 10,000 per month will be given on retirement after a minimum of 10 years of service.
- Dearness relief will be given on pension, family pension and minimum pension.
- Lump sum payment on retirement will be given in addition to gratuity.
