What is UPS: The TV Somanathan Committee, constituted in April 2023, has made recommendations to the central government to implement UPS after discussing with all the state financial secretaries, leaders and hundreds of employee unions.
Unified Pension Scheme: The government has approved the Unified Pension Scheme (UPS) scheme on Saturday. Giving this information, Electronics and Information Technology Minister Ashwini Vaishnaw said that government employees serve the people across the country and pension is an important part of their social security. He further said that the government employees had demanded that NPS be improved, the government was considering it. In this sequence, the government has approved UPS today.
The central government will implement this new scheme from April 1. Let us know what is UPS and how much money will be deducted in it. Along with this, we will also know when and who will get how much pension under this scheme.
What is UPS?
In the year 2003, Atal Bihari Vajpayee’s government abolished OPS and introduced NPS. But government employees were constantly raising their voices regarding NPS and were staging protests from time to time. The Modi government constituted a committee under the leadership of TV Somanathan in April 2023. This committee has made recommendations to the central government to implement UPS after discussing with the financial secretaries, leaders and hundreds of employee unions of all the states.
While announcing the implementation of UPS, Union Minister Ashwini Vaishnaw listed its five features.
50 percent pension guaranteed on the lines of OPS
The government has said that the employees had demanded that they should get a fixed pension. Under UPS, the employee will be given a pension of 50 percent of the average basic salary of the 12 months before retirement. However, the condition for this is that the employee should have worked for 25 years.
That is, if an employee is retiring after 25 years of service and his basic salary is 50 thousand, then he will get a pension of 25. On the other hand, if the employee has worked for a period of less than 25 years, then he will get pension in the same proportion.
Fixed pension for the family too
If an employee dies while working, his family i.e. his wife will get 60 percent of his pension. That is, if the employee gets Rs 30,000 as pension, his wife will get 60 percent of it i.e. Rs 18,000 as pension.
Pension not less than 10 thousand
If a person works for at least 10 years, he will be given a pension of Rs 10,000 per month. Here the proportional rule of basic salary will not apply.
Also Read:- Unified Pension Scheme: Good news! Govt approves Unified Pension Scheme for government employees, will get these benefits
Minimum dearness relief also
In the UPS scheme, the employee and family will also get minimum dearness relief money. This money will be given according to the All India Consumer Price Index for Industrial Workers. In OPS, it was called dearness relief.
Apart from gratuity, lump sum money also
In UPS, apart from gratuity, the employee will also get a lump sum amount on leaving the job. This will be based on 10 percent of the basic salary and dearness allowance of the employee after completing every six months of service.
How much money will be deducted?
Like NPS, in UPS too, employees will have to contribute 10 percent of their salary. But the government which earlier used to give 14 percent from its fund has now been increased to 18 percent.
At the time of implementing NPS, employees used to contribute 10 per cent and the government also used to contribute 10 per cent. But in 2019, the government contribution was increased to 14 per cent.
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