UPS Calculator: How To Calculate Your Retirement Payout Under Unified Pension Scheme Effective April 1 – News18
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The Unified Pension Scheme offers Central Government employees a minimum payout of Rs 10,000 per month after retirement from 1 April 2025.
UPS Calculator: Simple guide to calculate your retirement payout.
UPS Calculator For Government Employees: The Unified Pension Scheme (UPS) has been introduced as an option under the National Pension System (NPS) by the Central Government for Central Government employees covered under NPS so that they may receive an assured payout after retirement.
While NPS is a market-linked pension scheme whose payout will depend on the performance of equity and debt markets, UPS has an assured payout of a minimum of Rs 10,000 per month.
The UPS will become operational from 1 April 2025. Once employees under NPS opt for UPS, they cannot go back to NPS.
UPS Calculator: How to Calculate Your Pension Under UPS
You can calculate your pension under UPS by this UPS assured payout formula:
Payout = 50% x (Sum of last 12 months’ basic pay / 12)
It applies only if your service tenure is 25 years or more. If the service is less than 25 years, the payout is proportionate.
If an employee voluntarily retires after 25+ years, the payout starts from the original superannuation date (as if they had continued in service).
Let’s Understand With Examples:
Case 1: Full Assured Payout (25+ years of service)
An employee at the time of superannuation has an average basic pay of Rs 12,00,000. By applying the formula, you need to divide this amount by 12. So the last 12-month average basic pay is Rs 1,00,000. Now you need to multiply it by 50 per cent. Thus, the employee will receive a pension of Rs 50,000.
Case 2: Proportionate Payout (Less than 25 Years of Service)
Here we need to add the proportionate factor too. Suppose someone works for 20 years and then retires. Then, the proportionate factor will be 20/25 = 0.8.
So payout calculation will be 50% x 1,00,000 x 0.8 = Rs 40,000.
Case 3: Minimum Guaranteed Payout
If someone has Rs 15,000 basic pay during the time of retirement, their payout would be Rs 7,500 which is less than the minimum assured amount. So, their final payout would be Rs 10,000.
