Prime Minister Narendra Modi commended government employees on Saturday for their significant contributions to the nation, highlighting the benefits of the newly introduced Unified Pension Scheme (UPS), which aims to provide dignity and financial security to public servants.

In a tweet, PM Modi expressed pride in the hard work of government employees, stating, "The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future."

Set to be implemented from April 1, 2025, the UPS will offer assured pension, family pension, and a minimum pension guarantee. The scheme promises a pension equivalent to 50% of an employee's average basic salary from the last 12 months, provided they have completed at least 25 years of service. For employees with fewer years of service, the pension will be proportionate to their service length.

The scheme also includes a family pension provision, guaranteeing 60% of the employee's pension to their family upon the employee's death. Additionally, it offers a minimum pension of ₹10,000 per month after retirement, for those with at least 10 years of service.

Approximately 23 lakh central government employees who joined under the National Pension System (NPS) will benefit from the new UPS, as stated by Railways Minister Ashwini Vaishnaw.

Unlike the NPS, which is a defined contribution plan where employees contribute 10% of their basic pay while the government contributes 14%, the UPS provides a guaranteed pension along with a lump-sum payment at superannuation, gratuity, and a portion of monthly emoluments. These payments will not affect the amount of the assured pension.