8th Pay Commission New Scheme Implementation 2025: The new financial year is commencing on April 1st but brings with it the feature of alteration for many rules concerning common people to be fully established next financial year. Some of the new rules are going to set their foot in the new financial year. As such, this rule also pertains to pension for central staff. Actually, Unified Pension Scheme (UPS) is starting from April 1. This form is very new Pension Scheme implemented by Government of India for central employees. Union Cabinet of India approved this scheme in August. 2024, which now comes into effect on 1st April, 2025. Implementation is expected to benefit almost 23 lakh Central Government Employees.
What Unified Pension Scheme Speaks Of
It has tried to give the option to the central government under this scheme to central employees and provide under this scheme as option under the National Pension System (NPS) that either one of NPS and UPS shall be selected by the employee.
Special Things About UPS Too
That’s a fixed pension scheme. Employees retiring at 25 years will receive a pension of 50% of the average basic salary during the last 12 months before retirement. Meanwhile, employees with a service period of 10 to 25 years would receive a service-period proportionate pension. Another benefit offered to all employees with 10 years of completed service is that they would receive a pension of at least Rs 10,000 per month.
Pension For The Survivors
Now concerning the family pension, if a central government employee dies, his family will receive 60% of the employee pension. Employees would contribute 10% of their basic salary into the scheme. The matching contribution by the government would be 18.5%. Let us tell you that 14% will be contributed by the government into NPS. This scheme is applicable to central employees who are in NPS and who can avail of it. Employees qualifying for these pension schemes must have completed at least 10 years of service.
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