The Unified Pension Scheme (UPS) provides a guaranteed pension of 50% of the average basic pay upon retirement after 25 years of service. For those with less than 25 years but more than 10 years of service, a minimum guaranteed pension of Rs. 10,000 per month is provided. Gratuity is also part of the pension package. 8th Pay Commission: The 8th Pay Commission, announced to be effective from January 1, 2026, may bring further changes to pensions.