UPS vs NPS: Government Pushes Unified Pension Scheme with New Calculator Find Out Your Pension

The Indian government is ramping up efforts to promote the Unified Pension Scheme (UPS) for central government employees, launching a new UPS calculator to help them compare it with the National Pension System (NPS).

The central government is going all out to get its employees to sign up for the Unified Pension Scheme (UPS). They’ve even launched a shiny new UPS calculator to make things easier. But what’s the deal with this scheme, and why is it such a hot topic?

What is the Unified Pension Scheme

The UPS, rolled out in August 2024, promises a guaranteed pension of 50% of your average salary from the last 12 months before retirement. Sounds solid, right? Unlike the National Pension System (NPS), which depends on market returns, UPS offers a fixed pension, making it a safer bet for many. Plus, if a pensioner passes away, their family gets a secure pension too. The scheme started on April 1, 2025, but the deadline to opt in is June 30, 2025.

Why the New Calculator?

The government recently launched a UPS calculator by the NPS Trust. This tool lets employees punch in details like basic salary, HRA, and DA to see how much pension they’d get under UPS compared to NPS. For example, if NPS gives you ₹3,000 monthly, UPS might offer ₹3,500 or more. The idea is to help employees make an informed choice and show that UPS could be a better deal.

Why Aren’t Employees Signing Up

Here’s the catch: only about 10,000 out of 27 lakh central government employees under NPS have chosen UPS so far. That’s a tiny number! Many employees seem confused or unaware of the scheme’s benefits. Some still want the old pension scheme from before 2004, which they think was better.

To fix this, the government is holding outreach programs and showing PowerPoint presentations to explain why UPS is a game-changer. But with the June 30 deadline looming, they’re racing against time to avoid extending it.

What’s the Bigger Picture

The government isn’t just focusing on its employees. They’re also working on social security for everyone, like organized workers under EPFO and even gig workers or daily wagers. There’s talk of raising the minimum pension under the Employees’ Pension Scheme (EPS) from ₹1,000 to maybe ₹3,000.

Plus, schemes like Atal Pension Yojana are gaining traction, with over 7 crore subscribers, including many women. The goal? Ensure everyone has a safety net after 60, whether it’s for medical bills or daily expenses.

If you’re a government employee, the UPS could mean a more secure retirement. The calculator makes it easy to see if it’s better than NPS for you. But you need to act fast before the deadline. For others, these changes show the government’s push to make life after 60 easier for all workers, not just those in government jobs.