1 / 6The Modi government has introduced the Unified Pension Scheme (UPS) for government employees, aiming to replace the Old Pension Scheme (OPS). This new initiative seeks to reinstate benefits similar to those of the previous pension plan.2 / 6The Unified Pension Scheme (UPS) guarantees a pension equal to 50 percent of the average basic salary over the last 12 months of a government employee's service. This assured pension is available only to those who have completed 25 years of service. Additionally, employees with 10 years of service are also eligible for certain benefits under the scheme.3 / 6To assess which is more beneficial between the OPS and the UPS, you should compare them based on pension calculations, eligibility criteria, and overall benefits. This includes examining how pensions are determined, the service requirements for eligibility, and the extent of coverage provided under each scheme.4 / 6In the UPS, employee contributions are similar to those in the National Pension System (NPS), with employees required to contribute 10 percent of their basic salary. The government has increased its contribution from 14 percent to 18.5 percent. In contrast, the OPS does not include such employee contributions.5 / 6In the OPS, employees received a pension equivalent to 50 percent of their last salary, including basic pay and dearness allowance. Under the UPS, this provision has changed; employees are now guaranteed 50 percent of the average basic salary over the last 12 months, but not necessarily including allowances.6 / 6The government has not yet clarified the tax benefits under the UPS. However, under the NPS, pension withdrawals are partially taxed: 60 percent of the amount is tax-free, while the remaining 40 percent is subject to taxation based on the salary bracket.