CHANDIGARH, June 27 — The Haryana government has approved the implementation of the Unified Pension Scheme (UPS) for state government employees, set to take effect from August 1, 2025. The decision, taken by the Council of Ministers on Thursday, is expected to benefit over two lakh employees who were appointed on or after January 1, 2006.
The scheme, rolled out under the National Pension System (NPS), offers a guaranteed minimum monthly pension and family pension. Eligible employees completing 25 years of service will receive 50% of their average basic pay from the last 12 months before retirement. A minimum pension of ₹10,000 per month is assured for those who have served at least 10 years. In the event of a pensioner’s death, the family will receive 60% of the last drawn pension.
Dearness Relief (DR), calculated in line with the Dearness Allowance provided to serving employees, will also apply once pension payments begin. A one-time lump sum of 10% of monthly emoluments for every completed six months of service will be provided at retirement, without affecting the pension amount.
Under the revised contribution structure, employees will continue contributing 10% of their salary, while the state government will now contribute 18.5%—of which 10% will go to the individual pension account and 8.5% into a common pool to support assured benefits.
The scheme is estimated to cost the exchequer ₹600 crore annually. Existing and future government employees will have the option to either adopt the new UPS model or continue under the existing NPS structure.
By guaranteeing post-retirement financial stability, the new policy aims to safeguard employees from future uncertainties while maintaining the benefits of a contributory pension model.
