Government employees to get 19 per cent income boost with Unified Pension Scheme; Here's how

Central government employees have received multiple pieces of good news since the beginning of the year, including increased DA and other allowances. Now, government employees have received more good news.

Currently, central government employees are getting DA at the rate of 50%. That dearness allowance will increase again in September.

Meanwhile, the Centre has announced a completely new pension scheme for government employees, through which special benefits can be availed.

Through the Centre's new pension scheme, government employees can get a total of 19 percent income. Do you know how?

Government employees have been demanding changes to the existing pension scheme for a long time. Assembly elections are also due in Haryana and Jammu and Kashmir soon.

In this situation, the central government has announced a new pension scheme for 23 lakh central government employees.

The Centre announced the Unified Pension Scheme after the Union Cabinet meeting last Saturday. This new pension scheme emphasizes 1) Assured Pension 2) Assured Family Pension 3) Assured Minimum Pension.

Government employees who started their jobs after April 2004 can avail the benefits of this new pension system.

According to the central government, all government employees who will avail the UPS facility will benefit greatly from this new scheme. Firstly, in this new scheme, the government's contribution to the pension fund will increase to 18.5 percent.

Currently it is 14 percent. According to a Times of India review, this will affect the salaries of government employees. Income will increase directly by 19 percent.

However, only those employees whose monthly salary is Rs 50,000 will be able to take advantage of this. Government employees are seeing a 3 percent increase in their annual salary from this scheme.

Which means it can reach a compound annual growth rate of 4 percent CAGR. According to the new pension scheme, if a person serves for a minimum of 25 years, he will get 50 percent of the salary of the last 12 months before retirement (50 percent of basic salary) as pension.

In addition, under the Assured family pension, if a government employee dies, the family of that employee will get 60% of the total pension received as pension.

Under this new scheme, if you work for a minimum of 10 years, you can get Rs 10,000 per month as a pension according to Assured Minimum Pension, which is very important for government employees. This new scheme will come into effect from April 1, 2025.