Guaranteed ₹10,000 Pension: Key Features of the New Scheme for Central Government Employees

May 17, 2025 6:34 PM

If you work for the Central Government, this update may benefit you. From April 1, 2025, the Central Government has started a new pension scheme. Under this plan, employees will get at least ₹10,000 per month as pension after retirement. Here’s everything you need to know.

Main Features of the Pension Scheme

Under the new scheme, employees who retire after at least 25 years of service will receive 50% of their average basic salary from the last 12 months as pension. The pension amount will be at least ₹10,000 per month.

Employees who have worked for 10 years or more will receive a pension based on the length of their service. Retiring employees will also receive a lump sum amount, apart from the usual gratuity.

Family Pension Benefits

If an employee dies while still in service, the family will receive 60% of the employee’s pension. This helps the family stay financially secure.

Who Can Apply?

This scheme applies to:

Employees who were already working with the Central Government on April 1, 2025.
New employees who join on or after April 1, 2025.

These employees will be covered under the National Pension System (NPS). They can submit their forms online through the Protean CRA website or submit paper forms if preferred.

Note: Employees who resign, get dismissed, or are removed from service will not be eligible for this pension.

Difference Between Old and New Pension Schemes

Before January 2004, the Old Pension Scheme (OPS) gave retired employees 50% of their last basic salary as pension.

In the new Unified Pension Scheme (UPS), employees must contribute 10% of their basic salary and dearness allowance, while the government will contribute 18.5%.