Categories: Others

Union Cabinet approved the Unified Pension Scheme

Union Cabinet approved the Unified Pension Scheme (UPS)

The Union Cabinet, led by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS), which guarantees a pension of 50% of the average basic pay from the last 12 months before retirement, provided the employee has served for at least 25 years. The scheme also offers a family pension at 60% of the employee’s pension and ensures a minimum pension of ₹10,000 per month after 10 years of service. Unified Pension Scheme provides benefit of both new pension scheme as well as old pension scheme,

key features of Unified Pension Scheme here under:

  • Assured Pension: 50% of average basic pay over the last 12 months before retirement for at least 25 years of service, proportionate for shorter service periods.
  • Family Pension: 60% of the employee’s pension before their demise.
  • Minimum Pension: ₹10,000 per month after at least 10 years of service.
  • Inflation Indexation: Adjustments based on the All India Consumer Price Index for Industrial Workers. Both the assured pension and family pension are adjusted for inflation based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
  • Gratuity: A lump sum based on one-tenth of monthly emoluments for every six months of service.
  • Immediate Family Pension: 6% of the pension transferred to the family upon the employee’s demise.
  • Dearness Relief: Provided similar to service employees.
  • Lump Sum Payment: At superannuation, 1/10th of monthly emoluments (pay + DA) is paid for every six months of service, without reducing the assured pension.
  • UPS combines features of both OPS and the National Pension System (NPS) while allowing employees to contribute more for higher pensions. The government has increased its contribution to 18.5% under UPS.

For more details, visit the official press release

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

Recent Posts

Fraud Advisory for Auditors on Govt Schemes & Dormant A/cs

In today’s evolving financial ecosystem, fraud risks are becoming increasingly sophisticated, particularly in areas involving government-sponsored schemes and dormant bank… Read More

2 days ago

Compulsory disclosure of Bank Balances in ITR‑4

Compulsory disclosure of taxpayer Bank Balances in ITR‑4 CBDT has introduced a significant compliance requirement via Notification No. 45/2026 dated… Read More

3 days ago

New Procedure for PAN Correction : CBDT

CBDT Introduces New Procedure for PAN Correction In a parallel development under the new income tax framework, the Central Board… Read More

5 days ago

China’s Tax System vs. India’s Tax System

Overview of China's Tax System vs. India's Tax System Overall Structure Framework India: Federal dual-tax model, Center + state powers,… Read More

1 week ago

Emerging TDS Sec 194T Compliance Risks for Partnership Firm

Key Tax Deducted at Source Compliance Issues under Section 194T Section 194T significantly increases compliance rigor by imposing gross-based, real-time… Read More

2 weeks ago

Income‑tax Return Filing Calendar for FY 2025‑26

Income Tax Return Due Dates for FY 2025‑26 (AY 2026‑27) Timely filing of an income tax return ensures avoidance of… Read More

2 weeks ago
Call Us Enquire Now