Archive · 3 Jul 2025
Gratuity Benefits Confirmed for Unified Pension Scheme (UPS) Subscribers
The government clarified that people in the new UPS pension plan will get extra money called gratuity when they retire or die, just like those in the old NPS plan.
Gratuity is calculated based on how long they worked, with a limit.
UPS also gives a lump sum benefit when someone leaves.
The deadline to choose the UPS plan has been extended.
Unified Pension Scheme (UPS) subscribers are now eligible for retirement and death gratuity.
The Department of Pension and Pensioners’ Welfare (DoPPW) confirmed gratuity benefits for UPS.
Gratuity calculation: One-fourth of emoluments for every six-month service period, capped at 16.5 times emoluments (₹25 lakh ceiling).
UPS also offers a separate lump sum benefit on exit: 10% of emoluments for every six months of service.
The cut-off date to opt for UPS has been extended to September 30, 2025.
- Who
- Central government employees opting for Unified Pension Scheme (UPS).
- What
- Clarification on gratuity benefits for the Unified Pension Scheme (UPS).
- When
- The cut-off date to opt for UPS has been extended to September 30, 2025.
- Where
- Not specified.
- Why
- To clarify and confirm that those opting for UPS will receive gratuity benefits, similar to those in the National Pension System (NPS).
Current UPS
N/A
Gratuity Eligibility
Current UPS
UPS subscribers are eligible for Retirement gratuity and Death gratuity
N/A
Previously there was widespread speculation about the exclusion of gratuity under UPS
- Gratuity Eligibility
- UPS subscribers
- Gratuity Calculation
- 1/4 of emoluments per 6-month service, capped at 16.5x emoluments or ₹25 lakh
- Lump Sum Benefit
- 10% of emoluments for every 6 months of service
- Cut-off Date to opt for UPS
- September 30, 2025
- Eligible for OPS benefits (certain situations)
- death, invalidation, or disablement during service
