Central Government Offers Pension Scheme Choice for Employees

The Indian government has outlined a new option for central government employees, offering them the choice to switch from the National Pension System (NPS) to the Unified Pension Scheme (UPS).

This option is available for employees who joined between April and August 2025, with a deadline of September 30, 2025, for making their decision. This move is in line with an effort to provide employees with the opportunity to make informed choices regarding their retirement financial security.

The UPS, set to take effect from April 1, 2025, differs from the old pension scheme in its contributory nature, with employees contributing 10% and the government contributing 18.5% of basic salary and dearness allowance.

(With inputs from agencies.)