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Minimum Pension Under UPS Following The 8th Pay Commission

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Pragya Pathak

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Updated: 28-01-2025 at 7:45 AM

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8th Pay Commission

India has a specific system dedicated to managing the pensions of government or private-sector employees. Sometime before, the government announced the Unified Pension Scheme which caused quite a stir among the people who were supposed to benefit from it.

The government of India recently approved and announced the 8th Pay Commission and it carries a key provision of the Unified Pension Scheme (UPS) which would aid all the people who are currently enrolled in this pension scheme and hopefully also clear whatever issues they had with it.

Read the news article to learn more about the key provision of UPS announced through the 8th Pay Commission.

About The 8th Pay Commission

The government of India recently approved the 8th Pay Commission which comprises various provisions for various systems and one of those is the Unified Pension Scheme. The Union Minister, Shri Ashwini Vaishnaw said that the new Pay Commission would benefit all the citizens of India and will be implemented when the 7th Pay Commission completes its running in 2026.

Read More: Comparing India’s Pension Schemes: OPS, NPS, & UPS

What Is A Unified Pension Scheme?

The Unified Pension Scheme (UPS) was announced on August 24th, 2024, and would be implemented on April 1st, 2025. The objective of its introduction was simply to fill the gaps between the Old and National pension schemes and make the pension system efficient and smoother. UPS will include provisions for family pension and a minimum amount of fixed pension for all central govt employees.

As per the Unified Pension Scheme, employees retiring after completing a service of 25 years are entitled to a pension amount of 50% of their average basic pay drawn over a year before retirement. Employees with 10 years of service are entitled to receive Rs. 10,000 monthly as a fixed pension. In case the pensioner dies, the family is entitled to receive 60% of the total pension.

Read More: Chief Minister Ekal Nari Samman Pension Yojana

What Would Be The Minimum Amount Of Pension Under UPS?

Experts estimate that the fitment factor (a multiplier used to calculate the revised salaries and pensions of govt employees) under UPS can range from 1.92 to 2.86 which would increase the amount of the pension from Rs. 9000 to somewhere between Rs. 17,280 to Rs. 25,740.

If the fitment factor were set at 2.86, the minimum amount of salary of each govt employee would see an increase to up to Rs. 51,480 from the existing Rs. 18,000. Similarly, the pensions would increase from Rs. 9000 to Rs. 25,740.

Conclusion

The 8th Pay Commission will be implemented in the year 2026 and the provision that it carries concerning the minimum amount of pension under UPS will start working from the next year itself. Hopefully, this announcement will relieve people and help them in living fulfilled and healthy lives.

Stay updated with Jaagruk Bharat to get the latest information on government healthcare schemes and more, and reach out to us via our community page if you have any questions.

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