The Haryana government has taken a significant step to ensure the pension security of its state employees. In a cabinet meeting chaired by Chief Minister Nayab Singh Saini, the Unified Pension Scheme (UPS), notified under the National Pension System (NPS), has been approved. This scheme will be implemented from August 1, 2025, and will directly benefit over 2 lakh employees appointed on or after January 1, 2006.
Pension equivalent to half of the salary after 25 years of service
According to government information, under the UPS, if an employee has completed 25 years of service, they will receive a pension equal to 50% of their average basic salary of the last 12 months before retirement. A family pension system has also been established. The government has described this as a concrete initiative for the economic security and post-retirement stability of employees.
Defined pension even after 10 years of service
If an employee retires after 10 years or more of service, they will be provided a minimum guaranteed pension of ₹10,000 per month. Furthermore, if the pensioner passes away, their family will receive 60% of the last pension received as a family pension.
In addition, the benefit of Dearness Relief (DA) will also be applicable to both pension and family pension, which will be calculated according to the DA fixed for serving employees. However, this relief will be considered applicable only after the commencement of pension payments.
Lump-sum payment upon retirement and increased government contribution
The UPS scheme also provides for a lump-sum payment at the time of retirement for the employee. For every six months of qualifying service, 10% of the basic salary and DA will be provided as a lump-sum amount. This will not affect the fixed pension.
Until now, the government contributed 14% under NPS, while the employee contributed 10%. After the implementation of UPS, the government's contribution will increase to 18.5%. This will result in an additional financial burden of ₹50 crore per month and ₹600 crore annually on the government. Nevertheless, the government believes that this step will prove to be a milestone in providing better social and economic security to employees.
