India Launches Unified Pension Scheme for 2.3 Million Central Gov...

The Government of India has officially rolled out the Unified Pension Scheme, replacing the existing National Pension System for central government employees. The new scheme guarantees 50% of the average basic pay drawn over the last 12 months of service as a monthly pension after a minimum of 25 years of service. For employees with 10 to 25 years of service, a proportionate assured pension will apply. The Finance Ministry confirmed that approximately 2.3 million central employees are covered immediately, with state governments invited to adopt the scheme voluntarily. Economists noted that the assured pension model restores a degree of retirement certainty that was lost under the market-linked NPS and is likely to ease industrial unrest among government workers. Contributions from the government side have been raised to 18.5% of basic pay to fund the guaranteed element.