Unified Pension Scheme: Eligibility, Benefits, Returns, Gratuity

The Central Government has launched a new pension scheme, Unified Pension Scheme (UPS) among government employees across India. This reform has replaced several pension schemes that were previously in place for central and state government employees. The employer will also 18.5% of basic salary plus DA to the UPS.

What is Unified Pension Scheme?

The Central Government introduced the Unified Pension Scheme (UPS) for Central Government employees aiming to provide stability, dignity and financial security. It launched on April 1, 2025, specifically as an alternative for central government employees who are currently part of the National Pension System.

Currently, government employees are covered under the National Pension System (NPS). Government employees can continue with NPS or switch to the UPS scheme. The Unified Pension Scheme aims to offer a more predictable and stable income after retirement.

Unified Pension Scheme Overview

Scheme Name	Unified Pension Scheme (UPS)
Beneficiaries	Central Government employees, including newly joined and existing NPS subscribers
Last Date to Switch from NPS to UPS	30th September 2025
Employee Contribution	10% of basic salary + DA
Employer Contribution	18.5% of basic salary + DA
Minimum Service	10 years for minimum pension and 25 years for full pension
Gratuity	Eligible for retirement and death gratuity
Partial Withdrawal	Allowed after 3 years for specific reasons
Official Website Link	https://www.npscra.nsdl.co.in/ups.php

Who won’t get the benefit?

• If you’ve been employed for less than 10 years.
• If an employee has been dismissed from service.
• Or if someone has voluntarily left the job.

UPS vs NPS: Key Differences for Employees

Feature	Unified Pension Scheme (UPS)	National Pension System (NPS)
Payout	Assured, fixed monthly pension (min Rs. 10,000)	Market-linked, variable
Goverment Contribution	10% of basic + DA + extra for assured payout	For central government employees, the government currently contributes 14% of basic plus DA, while employees contribute 10%
Gratuity Benefit	Yes	No
Pension Calculation	50% of average 12-month basic pay (25 year’s service)	Based on accumulated market returns
Switching Option	Irrevocable, deadline-based	Default option if UPS not chosen
Flexibility	Low (choice is final)	Higher (early exit, partial withdrawal)

How to Apply for Unified Pension Scheme?

Eligible Central Government employees can apply for UPS either online or offline.

Online process

• Visit the Protean website.
• Click on ‘Unified Pension Scheme’ option.
• Select ‘Migrate from NPS to UPS’ if you are existing member of NPS or ‘Register for UPS’ option if you are a newly recruited employee joining service after 1st April 2025.
• Fill out the required details and submit. 

Offline process

• Visit the Protean CRA website.
• Under ‘Forms under Unified Pension Scheme’, click on the relevant form to download it.
  • Click on Form A1 if you are a newly recruited employee joining service after 1st April 2025.
  • Click on Form A2 if you are existing member of NPS and want to exercise the option of UPS.
  • Click on Form B1 if you are a NPS subscriber and retired on or after 1st April 2025.
  • Click on Form B2 if you are have retired before 31st March 2025.
  • Click on Form B5 if you are a spouse of a deceased retiree who has retired on or after 1st April 2025 but has not availed UPS.
  • Click on Form B6 if you are a spouse of a deceased retiree who retired before 31st March 2025 without availing UPS.
• Fill out the form and submit it to the DDO (Drawing and Disbursing Officer).
• The DDO will check the details and forward it to the PAO (Pay and Accounts Officer) for final approval. 

Under the Unified Pension Scheme, employees receive a guaranteed pension of ₹10,000. Central government employees already enrolled in the NPS will have the option to switch to the UPS.

The Unified Pension Scheme is specifically designed for retirement. Under this scheme, employees receive the benefit of a guaranteed pension, along with a minimum pension and a family pension.

Frequently Asked Questions