How will the 8th Pay Commission affect UPS pension?
The central government has recently announced the formation of the 8th Pay Commission, which will come into effect from january 1, 2026. The objective of this commission is to revise the salary and pension of central employees and pensioners. Along with this, the new Unified Pension Scheme (UPS) is also going to be effective from april 1, 2025. Both these schemes will have a profound impact on each other, which will benefit millions of government employees and pensioners.
What is Unified Pension Scheme (UPS)?
UPS has been created by combining the features of Old Pension Scheme (OPS) and New Pension Scheme (NPS). Under this scheme, after retirement, employees will get 50 per cent of their average basic salary of the last 12 months as pension, provided they have served at least 25 years. If an employee has served only for 10 years, he will get a minimum pension of Rs 10,000 per month. Apart from this, after the death of the employee, his family will be given 60 percent of his pension.
Effect of 8th Pay Commission
The formation of the 8th Pay Commission is an important step for central employees and pensioners. After its implementation, the pension is likely to increase by about 25 percent to 30 percent. Currently, the minimum pension is Rs 9,000, which can increase to between 22,500 to 25,000. Apart from this, the fitment factor may also increase, which will further increase the salary and pension.
Experts believe that the fitment factor can increase from 2.57 to 2.86, due to which the salary and pension of government employees can see an increase of up to 186 percent. This change will not only improve the standard of living of the employees but will also have a positive impact on the economy.
Who will get its benefit?
About 1.2 crore central employees and pensioners will get the benefit of this scheme. These employees and their families will be directly affected by this change. Both UPS and 8th Pay Commission schemes will ensure financial security for government employees.
click and follow Indiaherald WhatsApp channel