Unified Pension Scheme (UPS) pays 50% of your last 12-month average basic pay after 25 years. Minimum ₹10,000 a month after 10 years, plus Dearness Relief.
The option window for staff in service on 1 April 2025 closed on 30 November 2025. New recruits choose within 30 days of joining.
DFS Notification F. No. FX-1/3/2024-PR dated 24.01.2025 Confirmed · Updated 19 October 2026
Unified Pension Scheme at a glance
| Item | Rule |
|---|---|
| In force from | 1 April 2025, as an option under NPS Confirmed |
| Full payout | 50% of average basic pay of the last 12 months, after 25 years’ qualifying service Confirmed |
| 10 to 25 years | Proportionate payout Confirmed |
| Minimum payout | ₹10,000 a month on superannuation after 10+ years Confirmed |
| Family payout | 60% of the payout drawn just before death, to the legally wedded spouse Confirmed |
| Dearness Relief | Yes, worked out like DA. DA is 63% now (from 1 July 2026) Confirmed |
| Lump sum | 1/10 of last basic + DA for every completed 6 months of service Confirmed |
| Contribution | Employee 10% + Govt 10% of basic + DA, plus about 8.5% by Govt to a pool Confirmed |
| Window for existing staff | Closed 30 November 2025 Confirmed |
| New recruits | Choose within 30 days of joining (Form A1) Confirmed |
| People in UPS | 1,18,195 as on 19 July 2026 (Lok Sabha reply, 3 Aug 2026) Confirmed |
Who can choose the Unified Pension Scheme?
PFRDA lists three groups (PFRDA UPS page): Confirmed
- Staff in NPS on 1 April 2025. Their window closed on 30 November 2025.
- New recruits joining on or after 1 April 2025. They choose with Form A1 within 30 days of joining.
- NPS retirees up to 31 March 2025 with 10+ years of service, or FR 56(j) retirees, and spouses of such retirees who have died. This window also closed on 30 November 2025.
If you did not opt, you stay in NPS. The Government says there is no proposal to reopen, change or replace UPS (Lok Sabha *207, 3 Aug 2026). Confirmed
How is UPS pension calculated?
Assured payout = (P ÷ 2) × (Q ÷ 300)
P = average basic pay of the last 12 months · Q = qualifying service in months (below 120: no UPS; above 300: taken as 300)
Two things can then cut it down (DFS FAQs, 13.09.2025, Q42): Confirmed
Admissible payout = Assured payout × (IC ÷ BC) × (1 − FW%)
IC = your individual corpus · BC = benchmark corpus (IC ÷ BC capped at 1) · FW = final withdrawal, up to 60%
- IC lower than BC (missed credits, partial withdrawals not refilled, weak returns): payout falls in the same ratio. You can top up the gap before retirement.
- IC higher than BC: you get the extra in cash at retirement.
- Final withdrawal: every 10% you take out cuts the monthly payout by 10%.
UPS calculation examples
All cases use the Government’s own assumption: 12-month average basic pay of ₹45,000. Amounts are before Dearness Relief.
| Case | Working | Monthly payout | Source |
|---|---|---|---|
| 25+ years, IC = BC, no withdrawal | 22,500 × 300/300 | ₹22,500 | Gazette Scenario 1 |
| 20 years (240 months) | 22,500 × 240/300 | ₹18,000 | Our example |
| 15 years (180 months) | 22,500 × 180/300 | ₹13,500 | Gazette Scenario 2 |
| 10 years (120 months) | 22,500 × 120/300 = ₹9,000 → raised to minimum | ₹10,000 | Gazette Scenario 3 |
| 25+ years, IC only 90% of BC | 22,500 × 0.9 | ₹20,250 | Gazette Scenario 4 |
| 25+ years, 60% final withdrawal | 22,500 × (1 − 0.60) | ₹9,000 | FAQ formula |
Watch the last row. Under NPS, a 60% lump sum was normal. Under UPS it cuts the pension by 60%. The FAQ says the ₹10,000 minimum is “subject to timely and regular credit of contributions and no withdrawals”. Confirmed
With Dearness Relief: DR follows the DA rate. At today’s 63% (from 1 July 2026), ₹22,500 becomes ₹36,675 a month, and the ₹10,000 minimum becomes ₹16,300. DR is paid only once the payout starts, at the rate then in force. Estimate
VRS after 20 years: the CCS (UPS) Rules, 2025 allow it. You get a pro-rata payout (years ÷ 25) from your normal retirement date (PIB, 16 Sep 2025). Example: 22 years → ₹22,500 × 22/25 = ₹19,800 a month, starting at superannuation. Estimate
How much is the UPS lump sum at retirement?
On top of the monthly payout you get a lump sum. It does not reduce the payout. Confirmed
Lump sum = 1/10 × (last basic pay + DA) × number of completed six-month periods
| Service | Six-month periods | Gazette example (DA 53%) | Same pay at today’s DA 63% |
|---|---|---|---|
| 10 years | 20 | ₹1,37,700 | ₹1,46,700 |
| 20 years | 40 | ₹2,75,400 | ₹2,93,400 |
| 25 years | 50 | ₹3,44,250 | ₹3,66,750 |
| 30 years | 60 | ₹4,13,100 | ₹4,40,100 |
Gratuity is paid separately under the CCS (Payment of Gratuity under NPS) Rules, 2021. Estimate it with the gratuity and leave encashment calculator.
UPS family pension: how much does the spouse get?
60% of the payout the pensioner was drawing just before death, for life, plus DR. Confirmed
Example: pensioner drawing ₹22,500 → spouse gets ₹13,500 a month before DR. Estimate
- Only the spouse legally wedded on the date of retirement qualifies. A spouse married after retirement does not (FAQ 51). Confirmed
- Death or disability in service: the family or employee can choose CCS (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023 benefits instead (Lok Sabha, 3 Aug 2026). Confirmed
For the old-pension side, see family pension rules for central government employees. Railway staff under NPS can also read the Railway NPS rules 2025 (RBE No. 103/2025).
Can I switch from UPS to NPS?
Yes, once. DFS OM No. 1/3/2024-PR dated 25 August 2025 created a one-time, one-way switch (DFS OM, PIB). Confirmed
- Last date: 12 months before superannuation, or 3 months before the deemed date of VRS. Also allowed at resignation or FR 56(j) retirement (not as a penalty).
- Not allowed after removal, dismissal or penal compulsory retirement, or while disciplinary proceedings are pending or contemplated.
- You lose the assured payout. The Govt credits the extra 4% it would have paid under NPS (14% vs 10%) for your UPS years, and pays 14% from then on (FAQ 12).
- You can never return to UPS. If you do nothing, you stay in UPS.
Compare both before you decide: UPS vs NPS detailed comparison.
What happens on resignation, VRS or dismissal?
| Exit | What you get under UPS |
|---|---|
| Superannuation, 10+ years | Assured payout from retirement Confirmed |
| FR 56(j) retirement (not a penalty) | Assured payout from that date Confirmed |
| VRS after 25 years | Full formula payout, starting from your normal retirement date Confirmed |
| VRS after 20–25 years | Pro-rata payout (years ÷ 25), from normal retirement date Confirmed |
| Resignation | No assured payout. Individual corpus paid as per PFRDA rules (FAQ 64) Confirmed |
| Dismissal or removal | Assured payout forfeited. Individual corpus paid as a lump sum (FAQ 69) Confirmed |
| Penal compulsory retirement | Between two-thirds and full admissible payout (FAQ 68) Confirmed |
UPS vs NPS: key differences
| Point | NPS | UPS |
|---|---|---|
| Govt contribution | 14% | 10% + about 8.5% to a pool |
| Assured monthly payout | No | Yes, if conditions are met |
| Minimum pension | No | ₹10,000 a month |
| Dearness Relief | No | Yes |
| Family benefit | Depends on annuity | 60% of payout |
| Final withdrawal | Up to 60% | Up to 60% (cuts payout) |
| Tax benefits | Yes | Same as NPS |
Since 13 November 2025, NPS and UPS staff can also pick two more fund choices: LC-75 (equity up to 75%) and BLC (equity up to 50%, tapering from age 45) (DFS notification F. No. FX-4/2/2025-PR). Confirmed
Important UPS dates
| Date | What happened |
|---|---|
| 24.01.2025 | UPS notified by DFS, effective 01.04.2025 (Gazette) Confirmed |
| 01.04.2025 | UPS starts. First window to 30.06.2025 Confirmed |
| 25.08.2025 | One-time UPS-to-NPS switch introduced (DFS OM) Confirmed |
| 02.09.2025 | CCS (Implementation of UPS under NPS) Rules, 2025 notified by DoPPW (PIB) Confirmed |
| 06.10.2025 | PFRDA extends the window to 30.11.2025 (circular PFRDA/2025/14/SUP-CG-SG/06) Confirmed |
| 13.11.2025 | LC-75 and BLC fund choices added (notification) Confirmed |
| 30.11.2025 | Last date for existing staff and past retirees (PIB, 25 Nov 2025) Confirmed |
| 03.08.2026 | Lok Sabha: 1,18,195 opted by 19.07.2026; no proposal to change UPS (reply) Confirmed |
Will the 8th Pay Commission change UPS?
Your payout uses your basic pay at retirement. If the 8th CPC raises basic pay before you retire, P in the formula goes up. Estimate
But para 11 of the notification says UPS optees cannot later claim any “policy concession, policy change, financial benefit, any parity with subsequent retirees”. Confirmed How the 8th CPC will treat UPS payouts already running is not announced. Pending
Track it on the 8th Pay Commission latest news page. Check your basic pay cell on the 7th CPC pay matrix, and the DR rate on the DA hike tracker.
Work out your own figures with the official NPS Trust UPS calculator or our pension calculator. Check your retirement date with the retirement date calculator.
Changes in this update: the number of UPS optees (1,18,195 on 19.07.2026) is now taken from the official Lok Sabha reply instead of a media report. Two Railway Board items in the old deadline list could not be opened on an official site, so we removed them. Added: LC-75/BLC fund choices, VRS-after-20-years example, lump sum at today’s 60% DA, and the 14% NPS contribution after a switch.
Unified Pension Scheme FAQs
Can an existing employee still opt for UPS?
No. The window for staff in service on 1 April 2025 closed on 30 November 2025. The Government told the Lok Sabha on 3 August 2026 that there is no proposal to change UPS.
What is the minimum pension under UPS?
₹10,000 a month on superannuation after 10 or more years of qualifying service, plus Dearness Relief. It assumes regular contributions and no withdrawals.
How is UPS pension calculated?
Assured payout = (P ÷ 2) × (Q ÷ 300). P is the average basic pay of the last 12 months and Q is service in months, capped at 300. With P = ₹45,000 and 25 years, it is ₹22,500 a month before DR.
How much family pension is paid under UPS?
60% of the payout the pensioner was drawing just before death, paid for life to the spouse legally wedded on the date of retirement, plus DR.
Can I switch from UPS back to NPS?
Yes, once, up to 12 months before superannuation or 3 months before VRS. You lose the assured payout, and the Government credits the extra 4% NPS contribution for your UPS years.
Does UPS get Dearness Relief?
Yes. DR is paid on the assured payout and family payout, worked out like DA. It starts only when the payout starts.
Official sources: DFS Notification F. No. FX-1/3/2024-PR, 24.01.2025 · DFS FAQs on UPS for Subscribers, 13.09.2025 · DFS OM 1/3/2024-PR, 25.08.2025 · DFS Notification FX-4/2/2025-PR, 13.11.2025 · PFRDA UPS page · PFRDA circular, 06.10.2025 · PIB, 25 Nov 2025 · PIB, 16 Sep 2025 · Lok Sabha Starred Q. *207, 03.08.2026 · DFS UPS documents
Labels: Confirmed official order or release, linked · Estimate our calculation, not a government figure · Reported media or union report · Demand staff-side demand · Pending awaited
8thpaycalculator.in is an independent website, not a Government site. Check figures with your DDO, PAO or pension disbursing authority. Found an error? Report it. How we check facts: Editorial Policy. Updated 19 October 2026 by the 8thpaycalculator.in editorial team.
