Big relief for central government employees! Starting April 2026, the Modi government will launch a new pension scheme with ₹10,000 minimum monthly pension and a 60% family benefit. Here’s everything you need to know.
A New Dawn for Central Employees’ Retirement Life
Govt of India surprised lakhs of central govt employees in a big announcement, a new pension scheme is to be launched by April 2026, according to media reports. The audacious move also assures a minimum monthly pension of ₹10,000 for employees in the NPS- cadre, completely transforming retirement policy here.
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Guaranteed 50% of Last Year’s Basic Pay—No More Guesswork
What thing this scheme special is its benefit: Average basic salary up to 12 months before retirement will now be paid back at 50% as pension. The benefit, however, is only applicable to a retirement minimum period of 25 years. Those serving for 10 years or more will get a commensurate pension. In this day of the unknown post-retirement income, the very provision of this financial safety blanket was the hope for many retirees.
Family Pension That Offers Real Security
The program stops at retirement benefits. It also comes with a thick helping of family protection too. 60% of eligible pension amount will be paid to family of an employee when he/she dies — stability in bad times and happens. Now throw in a once-off retirement pay with the vesting gratuity and the package begins to smell like a golden goodbye.
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Who’s In and Who’s Not? Know Your Eligibility
NPS employees who are already on board as of April 1, 2025, are eligible* Those joining after that date will sign up automatically. Enrollment starts online through the Protean CRA website starting on April 1, 2025, with a paper routing option available. But only those who leave, quit, or are involuntarily separated from service will not be covered by this benefit.
OPS vs. UPS – What’s the Catch?
The fresh model is called UPS (Unified Pension Scheme) and is distinct from the old OPS (pre-January 2004) UPS; it needs contributions. Employees will contribute 10% of their basic and dearness allowance, while the Centre picks up the ultimate 18.5%.
This move blends the charm of the old pension system with the responsibility of modern financial planning. For central employees, this isn’t just policy—it’s peace of mind wrapped in numbers.