The central government has extended the deadline for joining the Unified Pension Scheme (UPS) by two months, moving it from September 30, 2025, to November 30, 2025.
This extension gives central government employees more time to make an informed decision about joining the scheme.
The move was initiated by the Ministry of Finance and communicated to the Pension Fund Regulatory and Development Authority (PFRDA).
About the Unified Pension Scheme
The UPS was launched on April 1, 2025, as an alternative to the National Pension System (NPS).
Employees enrolled in UPS receive a fixed monthly pension after retirement, which can be up to 50% of their average basic salary from the last 12 months. Under the scheme:
Employees contribute 10% of their salary.
The government contributes 18.5%.
The scheme aims to provide better pension benefits and ensure financial security for employees after retirement.
Participation and Improvements
So far, only about 100,000 employees out of 2.3 million central government employees have opted for UPS.
Due to this low participation, the government extended the deadline to allow employees more time to understand the scheme and decide whether to switch from NPS.
UPS has recently added new features:
Switch option
Resignation benefits
Compulsory retirement benefits
Tax exemptions
These improvements require employees to fully understand the scheme, which is why the deadline extension is necessary.
Pension Details
Under UPS:
Employees with at least 10 years of service receive a minimum monthly pension of ₹10,000.
Employees with 25 years or more of service receive 50% of their last salary.
The scheme is specifically for employees who joined the central government after January 1, 2004, and are currently covered under NPS
