UPS vs NPS: The central government has taken a big decision related to pension, which will directly affect lakhs of employed people. If you are a central government employee and you have opted for the Unified Pension Scheme (UPS), then now you can switch to the National Pension System (NPS). The government gave this information by issuing a notification on Monday night, 25 August.

Important Update for Central Government Employees!

Government has now introduced one-time, one-way switch facility from #UnifiedPensionScheme (UPS) to National Pension System (NPS). Central government employees can switch to the UPS before September 30, 2025, for assured… pic.twitter.com/UjJJjM56S9

— PFRDA (@PFRDAOfficial) August 25, 2025

The Finance Ministry has clarified that this facility will be available only once and one-way. That is, if you switch from UPS to NPS, you will not be able to go back to UPS again. This switch will be available only for those employees who have chosen UPS.

According to government data, as of July 20, about 31,555 central employees have opted for UPS and the last date for enrollment under this scheme is September 30, 2025, which will provide guaranteed pension and many benefits. The option to switch from UPS to NPS is also available till September 30.

When can we make the switch?
Employees can choose this option up to one year before the date of retirement or three months before retirement in case of voluntary retirement. If the switch is not made during this period, the employees will remain in UPS by default.

Who will not get this facility?
If an employee has been removed, dismissed or forcibly retired, or disciplinary proceedings are pending against him, he will not be able to avail this facility.

Know the advantages and disadvantages of NPS?
Once the employees leave UPS and join NPS, they will no longer be eligible for the fixed pension and guaranteed benefits of UPS. Instead, they will be able to invest and withdraw pension as per NPS rules.

An additional 4% contribution from the government will also be added to the employee’s NPS account. Pension will be decided based on the amount deposited at the time of retirement.

Let us tell you that the government has ordered all the ministries and departments to ensure that this information is conveyed to their employees so that they can take the right decision in time.

The post UPS vs NPS : Big news for government employees! Big opportunity to switch from UPS to NPS, but for how long? Know here first appeared on Rightsofemployees.com.

The Finance Ministry on Friday said that the inclusion of UPS under the tax structure is another step by the government towards strengthening retirement security for central government employees through transparent, flexible and tax-efficient options. According to the ministry, the government has decided that the tax benefits available under NPS will also be applicable to UPS, as it is an option under NPS.

Benefits will be similar to NPS

These provisions ensure parity with the existing NPS structure and provide adequate tax relief and incentives to employees opting for UPS. The Finance Ministry had notified on January 24, 2025 that UPS will be implemented as an option under NPS for employees recruited in the Central Government Civil Services from April 1, 2025. Following this notification, government employees covered under NPS have also been given the option to join under UPS.

PFRDA will manage

To implement this framework, the Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operation of Unified Pension Scheme under NPS) Rules, 2025 on March 19, 2025. UPS is applicable to those Central Government employees who are covered under NPS and opt for this option under NPS. Currently, 23 lakh Central Government employees are covered under it.

UPS was implemented last year.

The Union Cabinet led by Prime Minister Narendra Modi had approved the introduction of the UPS option on August 24, 2024. NPS was introduced for government employees after the closure of the Old Pension Scheme (OPS) from January 2004. But this system is market-based which means there is no guaranteed pension available in this scheme. Employees oppose it and to overcome this dilemma, the Guaranteed Pension UPS has been implemented.

Most Read Articles:-

• Banking rules changed from July 1, from ICICI to HDFC and Axis Bank increased the charges

• Muharram School Holiday: Is there a Muharram holiday in your state or not? Will schools remain closed on 7 July?

• 17 Countries Offering Digital Nomad Visa For Indian Passport Holders

• IMD Heavy Rain: Orange alert for heavy rain in these states till 5, 6, 7, 8, 9 July

• New rule for SIM card, fake numbers will be blocked through AI, DoT has made big preparations

The post Tax Benefit in UPS: Government has announced more benefits in UPS for central employees. Details Here first appeared on Rightsofemployees.com.

The central government made a big announcement last Saturday and announced the launch of the Unified Pension Scheme. Earlier it was being considered a way between NPS and OPS, but on Tuesday the Finance Minister clarified that it is different and better than NPS. Now people have a question in their mind that how is it so? Let us understand through calculation that if someone’s salary is Rs 50,000 per month, then how can one get more pension through UPS than NPS.

What is special in UPS?

To understand the whole calculation, first of all it is important to know what is special in the Unified Pension Scheme introduced by the government, which makes it different from NPS. So let us tell you that full pension will be available only when an employee has completed 25 years of service. The pension amount will be 50% of the average basic salary of the last 12 months. Apart from this, there is also a provision of minimum assured pension in UPS, under which a pension of at least Rs 10,000 per month will be confirmed after working for 10 years. In the family pension category in UPS, 60 percent of the pension will be given to the family on the death of the employee. Along with all these pensions, the benefit of dearness relief i.e. DR is also available.

This is the big difference between NPS-UPS

Talking about the big difference between the National Pension Scheme and Unified Pension Scheme, where in NPS the employee contributes 10 percent of his salary and the contribution given by the government is 14 percent, the total amount deposited in the NPS account is equal to 24 percent of the employee’s salary. On the other hand, in UPS, the employee contributes only 10 percent, but the contribution from the government is not 14 percent, but 18.5 percent. Overall, 28.5 percent of the salary will be deposited in the UPS account.

Also Read- UPS scheme: How many government employees will get the benefit of UPS? Details are here

Calculation of pension

Now let’s talk about how an employee can get more pension through UPS than NPS. So let’s understand this on the basis of a calculation.

On the basis of a salary of Rs 50,000 in NPS, the employee’s monthly contribution will be Rs 5,000 at the rate of 10 percent and 14 percent of this will be Rs 7,000 to the government. This will make the amount deposited in the NPS account Rs 12,000. National Pension Scheme is a scheme linked to the stock market, in which on making contribution, up to 60 percent of the amount is given as lump sum at the time of retirement and the remaining 40 percent amount is given as annuity. Let us assume that it gives 8% return and the deposit increases by 3% annually and the annuity gives 6% return, then in 35 years the total fund in NPS will be Rs 3,59,01,414. Out of this, annuity of around Rs 1.43 crore will have to be purchased. According to this, you will get Rs 77,000 as pension every month. Let us tell you that due to being market linked, the return can increase or decrease.

Pension will be made in this way in UPS

At the same time, the entire fund of the account in UPS will remain with the government. In return, the employee will be given 10% of the salary in lump sum on completion of every 6 months of service. There will be 70 half-years in a 35-year job. If we consider the average salary of Rs 50,000, then Rs 30,000 will be given for every half-year. In this way, on completion of 60 years, a total of Rs 21 lakh will be received in lump sum. However, this amount will also increase with the increase in salary. Apart from this, the pension will be 50 percent of the average basic salary of the last 12 months.

If we calculate 35 years of service, the starting salary is Rs 50,000 and suppose by the last 12 months of service your basic salary becomes Rs 1,00,000, then your pension amount will be Rs 50,000 per month and if 50% dearness relief (DR) is added to it as per the current rate, then the total pension becomes around Rs 100000. In such a situation, UPS will give more pension than NPS. It is better for those who retire soon, but they will not get the return through investment like NPS.

Related Articles:-

7 Points of Unified Pension Scheme (UPS), which every government employee should know; otherwise…

UPS scheme: How many government employees will get the benefit of UPS? Details are here

Unified pension scheme: These 5 things about UPS make it special from NPS, check here

The post UPS vs NPS Pension Calculation: Know in which you will get more money first appeared on Rightsofemployees.com.