Advanced "UPS Pension Calculator"
Your UPS Pension Analysis
Comprehensive breakdown of your retirement benefits
Monthly Pension
Lump Sum
Family Pension
Pension Projections
Detailed Financial Analysis
Total Pension Value
Replacement Ratio
Total Contributions
Return on Investment
UPS vs Other Schemes
| Scheme Feature | UPS | NPS | OPS |
|---|
How to Use the UPS Pension Calculator
Our calculator helps you estimate your pension benefits under the Unified Pension Scheme (UPS). Follow these simple steps to calculate your retirement benefits.
1Enter Your Basic Salary
Input your monthly basic salary (without any allowances) in the "Monthly Basic Salary" field. This should be your current basic pay as per your pay scale.
2Provide DA Percentage
Enter the current Dearness Allowance (DA) rate as announced by the government. DA is expressed as a percentage of your basic salary.
Example: If the current DA is 42%, enter "42" in the DA field.
3Input Years of Service
Enter your total years of service until superannuation (retirement). This should include all qualifying service years that will count toward your pension.
4Provide Additional Information (Optional)
For more accurate projections, you can provide:
- Your current age
- Expected retirement age (typically 60 years)
- Life expectancy for pension duration calculations
- Expected inflation rate
Click on "Advanced Options" to access these fields.
5Calculate Your Pension
Click the "Calculate Pension" button to see your estimated pension benefits. The calculator will display:
- Your monthly pension amount
- Retirement gratuity/lump sum amount
- Family pension details
- Visual charts showing pension growth over time
- Comparison with other pension schemes
Pro Tip
Use the chart options to visualize how your pension will grow over time and how it compares to other pension schemes like the Old Pension Scheme (OPS) and National Pension System (NPS).
About the Unified Pension Scheme (UPS)
The Unified Pension Scheme (UPS), approved by the Government of India on 24th August 2024 and effective from 1st April 2025, is a contributory pension scheme for government employees. It has been designed as a middle path between the Old Pension Scheme (OPS) and the National Pension System (NPS), providing employees with assured retirement benefits while maintaining financial sustainability.
The scheme directly benefits about 23 lakh central government employees. If adopted by state governments, it could cover nearly 90 lakh employees. For example, Maharashtra became the first state to adopt UPS on 25th August 2024. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
Why Was UPS Introduced?
The Old Pension Scheme (OPS) gave lifelong fixed pensions but was fiscally unsustainable. The National Pension System (NPS), while sustainable, did not guarantee pensions and was market-linked. The Unified Pension Scheme (UPS) solves this by offering a guaranteed pension with inflation protection while ensuring a contributory, sustainable structure for the government.
Eligibility
- Existing NPS Employees: Central government employees under NPS as of 1st April 2025 can opt for UPS by 30th September 2025 (this choice is irrevocable).
- New Recruits: Those joining service on or after 1st April 2025 can opt for UPS within 30 days of joining.
- Retired NPS Employees: Those who retired before 31st March 2025 can opt through PFRDA’s top-up option.
- Spouses of Deceased Employees: Legally wedded spouses of NPS subscribers (who retired or died before 31st March 2025) can also opt in.
To apply, employees must submit specific forms: A1 (new recruits), A2 (current employees), B2 (retirees), B6 (spouses). These forms can be submitted via the Drawing and Disbursing Officer (DDO) or online at the Protean CRA portal.
Key Features of UPS
-
Guaranteed Pension:
- Employees with 25 or more years of qualifying service will receive 50% of the average basic pay of the last 12 months.
- Those with 10–24 years of service will receive proportionate benefits.
- Minimum service required is 10 years.
Example: If an employee’s average basic pay in the last year is ₹60,000, pension = ₹30,000/month. - Minimum Pension: ₹10,000 per month (₹1.20 lakh annually) for employees with at least 10 years of service.
-
Family Pension: 60% of the entitled pension to the legally wedded spouse.
Example: If pension = ₹30,000, family pension = ₹18,000/month. - Inflation Adjustment: Pension and family pension will increase with Dearness Relief (DR), linked to the All India Consumer Price Index (AICPI-IW).
-
Lump Sum Payment: At the time of superannuation, employees will get a lump sum = 1/10th of monthly emoluments (Basic + DA) for every 6 months of service, without affecting pension.
Example: If Basic + DA = ₹60,000 and service = 30 years (60 half-years), lump sum = ₹60,000 × 1/10 × 60 = ₹3,60,000. -
Contributions:
- Employee: 10% of Basic Pay + DA.
- Government: 10% matching contribution + ~8.5% into a common pool corpus.
Example: If Basic + DA = ₹50,000 → Employee pays ₹5,000, Government adds ₹5,000 + ~₹4,250 (pool).
Comparison with OPS & NPS
| Feature | OPS | NPS | UPS |
|---|---|---|---|
| Pension Type | Fixed (50% of last pay) | Market-linked (variable) | Assured (50% of average last 12 months) |
| Contribution | Nil (Non-contributory) | 10% employee + 14% govt (central) | 10% employee + 10% govt + ~8.5% pool |
| Inflation Protection | Yes (DA linked) | No | Yes (DA linked) |
| Sustainability | Fiscally Unsustainable | Sustainable, but no guarantee | Sustainable with Assured Returns |
| Flexibility | Not Applicable | Flexible (market-driven) | Irrevocable once opted |
Why UPS Matters?
UPS provides certainty, inflation protection, and family coverage, which were missing in NPS, and at the same time avoids the fiscal risks of OPS. For employees, this means predictable retirement income. For the government, it ensures long-term sustainability.
Frequently Asked Questions (FAQs) on Unified Pension Scheme (UPS)
1. What is the Unified Pension Scheme (UPS)?
UPS is a contributory pension scheme effective from 1st April 2025. It guarantees 50% of the average basic pay (last 12 months) as pension for employees completing 25+ years of service. It also provides family pension and inflation protection.
2. Who is eligible for UPS?
- Existing NPS employees (as of 1st April 2025) – option till 30th September 2025.
- New recruits joining on/after 1st April 2025.
- Retired NPS employees (before 31st March 2025).
- Spouses of deceased NPS employees (before 31st March 2025).
3. How much pension will an employee get under UPS?
- With 25+ years of service: 50% of average last year’s basic pay.
- With 10–24 years of service: Proportionate pension.
- Minimum pension: ₹10,000/month (₹1.20 lakh annually).
Example: If average basic pay = ₹60,000 → Pension = ₹30,000/month.
4. Does UPS provide family pension?
Yes. Family pension = 60% of the entitled pension.
Example: If pension = ₹30,000, family pension = ₹18,000/month.
5. How is UPS different from OPS and NPS?
- OPS: Fixed, non-contributory, but fiscally unsustainable.
- NPS: Contributory, market-linked, no guarantee.
- UPS: Contributory, guaranteed pension, DA-linked, sustainable.
6. Can employees switch back after opting for UPS?
No. Once an employee chooses UPS, the option is irrevocable.
7. How are contributions managed under UPS?
Employee contributes 10% of Basic + DA. Government contributes 10% + ~8.5% into a pool.
Example: If Basic + DA = ₹50,000 → Employee = ₹5,000, Government = ₹9,250 (₹5,000 + ~₹4,250 pool).
8. Will pensions increase with inflation?
Yes. UPS pensions are linked with All India CPI (AICPI-IW). Dearness Relief (DR) will be applied as given to serving employees.
9. How can employees apply for UPS?
Through forms A1, A2, B2, or B6 submitted to DDO or online at Protean CRA.
10. Where can I get more details?
Visit: PFRDA, Protean CRA, or UPS Pension Scheme Portal.
Important Disclaimer
This calculator provides estimates based on current pension rules and your inputs. Actual pension benefits may vary based on government rules, future amendments, and individual circumstances. For official pension calculations, please consult with your department's pension cell or a certified pension advisor.