Unified Pension Scheme for Central Govt Employees Pension Calculations: Rs 1,00,000 average basic pay at retirement; 30 years of service; what will be your monthly pension?

UPS Pension Calculations: Starting April 1, 2025, central government employees have one more pension option to choose – Unified Pension Scheme (UPS). This is in addition to National Pension System (NPS), which was the pension scheme for employees who joined their service on January 1, 2004, and after.

Employees who joined before that still get their pension under Old Pension Scheme (OPS).

Employees who have opted for NPS can switch to UPS.

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Pensioners who get their pension under NPS may also switch to UPS.

Know what the estimated monthly pension and lump sum amount will be for a central government employee with Rs 1,00,000 as the average last-drawn basic pay and 30 years of pensionable service?

What is assured pension in UPS?

On a minimum service of 10 years, UPS guarantees a minimum assured pension of Rs 10,000.

On completion of a minimum of 25 years of service, the pension will be 50 per cent of the average of 12 months of last-drawn basic salary and dearness allowance.

Employees who have their service between 10 and 25 will get a proportionate pension.

The assured income will be irrespective of the performance of UPS investment.

What is lump sum amount in UPS?

The employee is also eligible for a one-time lump sum amount at retirement.

To calculate it, we need to multiply 1/10th of the total emoluments (basic pay+dearness allowance) by the number of completed six-month periods of service.

E.g., if one has worked for 26.5 years, their six-month service periods will be 53.

UPS contribution

The employee will have a minimum of 10 per cent contribution of their basic salary and dearness allowance, while the government will contribute a maximum of 18.5 per cent of basic salary and DA.

What is UPS family pension?

If the pensioner dies, their family will get 60 per cent of the pension amount.

Estimated monthly pension for an average Rs 1 lakh last-drawn basic pay, 30 years of service

At a 53 per cent dearness allowance (DA) rate, the total estimated salary for such a person will be Rs 1,53,000.

So, the estimated monthly pension will be Rs 76,500.

Estimated lump sum for an average Rs 1 lakh last-drawn basic pay, 30 years of service

The estimated lump sum amount that the employee will get at retirement will be Rs 9,18,000.

Estimated family pension for deceased's family

The estimated family pension will be Rs 45,900 in such a case.