UPS has attracted just 4% of NPS subscribers: Government
The Indian government reports low adoption rates for the Unified Pension Scheme (UPS), with only 4.3% of eligible central government employees opting in. Despite the government's efforts to provide assured pension benefits, many employees remain hesitant, leading to an extension of the migration deadline.
Why it matters
Pension reform is a significant fiscal and social issue in India, impacting millions of government employees and state budgets.
NEW DELHI: For all the noise demanding an assurance on pension, Unified Pension Scheme (UPS) for central govt employees has received low traction.Data shared with Parliament Monday estimated the number of govt employees, including those who joined recently, at 1,18,195 on July 19 — which is 4.3% of the 27.6 lakh central govt number subscribers of National Pension Trust at the end of June.For long govt employees, at the Centre as well as in states, were demanding an assurance that the pension payout be at least 50% of their last salary — something that is the norm under the old pension scheme, which was discontinued in 2004 when NPS, which has contributions from the employee, kicked in.Several opposition-governed states stopped contributing to NPS and wanted to opt out, prompting the Centre to put in place UPS from April 2025.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in