With the announcement of the Unified Pension Scheme (UPS), many are curious about how it will affect their pension, especially if they were to retire today. Here’s a breakdown of the potential pension you could receive under UPS if your basic salary is Rs 60,000, Rs 70,000, or Rs 80,000. But before diving into the calculations, let’s first understand the key announcements and terms under this scheme.
The Central Government introduced the Unified Pension Scheme (UPS) on August 24, 2024, which will be effective from April 1, 2025. This scheme promises a fixed pension for government employees based on their contributions. Additionally, it offers family pension benefits in case of the employee’s death. For those who have served between 10 to 25 years, a minimum pension of Rs 10,000 per month will be provided.
How much pension will retired employees get?
To qualify for the full pension under UPS, an employee must have completed 25 years of service. The pension amount will be 50% of the average basic salary over the last 12 months. In the event of the employee’s death, the family will receive 60% of the pension. For employees with at least 10 years of service, a minimum pension of Rs 10,000 per month is guaranteed.
What will your pension be?
For a Basic Salary of Rs 60,000:
If your average basic salary over the last 12 months is Rs 60,000, your pension under UPS will be Rs 30,000 per month (plus DR). In case of the employee’s death, the family pension would be Rs 18,000 per month (plus DR).
For a Basic Salary of Rs 70,000:
With a basic salary of Rs 70,000, the pension under UPS would be Rs 35,000 per month (plus DR). The family pension in this case would be Rs 21,000 per month (plus DR).
For a Basic Salary of Rs 80,000:
If the basic salary is Rs 80,000, the pension amount under UPS would be Rs 40,000 per month (plus DR). The family pension would then be Rs 24,000 per month (plus DR).
Under this pension scheme, the government will contribute 18.5% of the basic salary plus DR, while employees will contribute 10%. The pension benefits will be calculated based on these contributions.