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His remarks came after the Union Cabinet approved a guaranteed pension of 50 percent of salary for 2.3 million government employees | Photo: PTI
Prime Minister Narendra Modi on Saturday said the unified pension scheme ensures the dignity and financial security of government employees and is in line with the government's commitment to their welfare and a secure future.
His remarks came after the Union Cabinet approved a guaranteed pension of 50 per cent of salary for 2.3 million government employees who joined service under the National Pension Scheme (NPS).
We are proud of the hard work of all government employees who contribute significantly to national progress. The unified pension scheme ensures dignity and financial security for government employees and is in line with our commitment to their welfare and a secure future.…
— Narendra Modi (@narendramodi) 24 August 2024
The National Pension Scheme applies to government employees who joined the service after April 1, 2004. It was based on the contributory principle rather than the defined benefit principle that applied to employees before the NPS.
“We are proud of the hard work of all government employees who contribute significantly to national progress. The unified pension scheme ensures dignity and financial security for government employees and is in line with our commitment to their welfare and a secure future,” Modi said in a post on X.
Announcing the Cabinet decisions, Indian Information and Broadcasting Minister Ashwini Vaishnaw said that government employees would now be entitled to 50 percent of their average basic salary for the last 12 months preceding retirement under the Unified Pension Scheme (UPS).
To qualify for this full pension or 50 percent of salary as a pension, he said, the eligibility requirement is 25 years of service.
However, in the case of a shorter period of service up to a minimum of ten years, the remuneration is appropriate.
NPS subscribers can now opt for the Unified Pension Scheme (UPS), which offers a guaranteed pension effective from the beginning of the next financial year.
First published: August 24, 2024 | 9:32 p.m. IS
