Calculate Your Pension
In India, there are three primary pension schemes for government employees:
- Old Pension Scheme (OPS)
- National Pension System (NPS)
- Unified Pension Scheme (UPS)
Let's break down each scheme to understand their features and differences.
1. Old Pension Scheme (OPS)
- Eligibility: Government employees who joined before January 1, 2004
- Contribution: No contribution required from employees
- Pension Amount: 50% of the last drawn salary
- Risk: No investment risk; pension is guaranteed
- Inflation Adjustment: Yes, through Dearness Allowance (DA)
- Family Pension: Yes, provided to the spouse after the employee's demise
2. National Pension System (NPS)
- Eligibility: Government employees who joined on or after January 1, 2004
- Contribution: Employee contributes 10% of basic salary; employer contributes 14%
- Pension Amount: Based on accumulated corpus and market returns; not fixed
- Risk: Investment risk due to market-linked returns
- Inflation Adjustment: No automatic adjustment; depends on investment performance
- Family Pension: Depends on the annuity plan chosen at retirement
3. Unified Pension Scheme (UPS)
- Eligibility: Government employees enrolled in NPS as of March 31, 2025, and new recruits from April 1, 2025
- Contribution: Employee contributes 10% of basic salary; employer contributes 18.5%
- Pension Amount: Guaranteed 50% of the average basic pay over the last 12 months before retirement (for 25 years of service). Minimum pension of ₹10,000 per month for at least 10 years of service
- Risk: Low; pension amount is assured
- Inflation Adjustment: Yes, through Dearness Relief (DR) adjustments
- Family Pension: 60% of the pension received immediately before the retiree’s demise
Comparison Table
| Feature | OPS | NPS | UPS |
|---|---|---|---|
| Eligibility | Govt. employees before Jan 1, 2004 | Govt. employees from Jan 1, 2004 | NPS subscribers as of Mar 31, 2025, and new recruits from Apr 1, 2025 |
| Employee Contribution | None | 10% of basic salary | 10% of basic salary |
| Employer Contribution | Fully funded by government | 14% of basic salary | 18.5% of basic salary |
| Pension Amount | 50% of last drawn salary | Based on corpus and market returns | 50% of average basic pay over last 12 months (for 25 years of service); minimum ₹10,000/month (for 10 years of service) |
| Risk | Low | High (market-linked) | Low |
| Inflation Adjustment | Yes (via DA) | No | Yes (via DR) |
| Family Pension | Yes | Depends on annuity plan | 60% of retiree's pension |
Summary
OPS
Guaranteed pension without employee contribution; applicable to employees who joined before 2004.
NPS
Market-linked pension with contributions from both employee and employer; applicable to employees who joined from 2004 onward.
UPS
New scheme combining features of OPS and NPS; offers guaranteed pension with contributions from both employee and employer; applicable to current NPS subscribers and new recruits from April 1, 2025.
Discussions