Unified Pension Scheme: A big relief has come for government employees. Those choosing the Unified Pension Scheme (UPS) will now get tax benefits like the National Pension System (NPS). This change has been made under the UPS implemented in January 2025, which will increase security after retirement. About 23 lakh employees of the central government can take advantage of this option. This step of the government is considered to be a big decision towards promoting a transparent and tax-efficient retirement system.

Unified Pension Scheme: There is great news for lakhs of government employees working in government and private institutions of the country. Employees joining the Unified Pension Scheme (UPS) will get tax benefits like the National Pension System (NPS). To promote the Unified Pension Scheme, the government has made necessary changes to give tax benefits like the National Pension Scheme to the employees opting for this scheme.

A statement issued by the Finance Ministry on Friday said that the inclusion of the Unified Pension Scheme under the tax slab is another step of the government towards strengthening retirement security for central government employees through transparent, flexible and tax-efficient options. The ministry said, "The government has decided that the tax benefits available under the National Pension System will also apply to the Unified Pension Scheme, as it is an option under the National Pension Scheme." These provisions ensure parity with the existing National Pension System structure and provide adequate tax relief and incentives to employees opting for the Unified Pension Scheme.

Unified Pension Scheme implemented in January

The Ministry of Finance had notified on January 24, 2025 that the Unified Pension Scheme was implemented as an option under the National Pension System for employees recruited in the civil services of the Central Government from April 1, 2025. After this notification, government employees coming under the National Pension System got a one-time option to join the Unified Pension Scheme. To implement this framework, the Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operation of Unified Pension Scheme under NPS) Regulations, 2025 on March 19, 2025.

23 lakh government employees can choose the option

UPS applies to those central government employees who come under the purview of the National Pension System and choose this option under the National Pension System. This option can be exercised by 23 lakh government employees. The Union Cabinet headed by Prime Minister Narendra Modi approved the option of Unified Pension Scheme on August 24, 2024. The National Pension System was introduced for government employees after the Old Pension Scheme (OPS) was discontinued from January 2004.

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