India's Unified Pension Scheme to Benefit 23 Lakh Employees, Modi Administration's Historic Move

Aug 25, 2024, 04:52 AM

The Indian government has introduced the Unified Pension Scheme (UPS), which is set to benefit 23 lakh central government employees and potentially impact 1-1.25 crore voters. Union Minister Jitan Ram Manjhi noted that if state governments agree, 90 lakh employees could benefit. The scheme allows government employees to choose between the existing National Pension Scheme (NPS) and the new UPS. The UPS is perceived as a response to opposition demands for a more favorable pension system, akin to the Old Pension Scheme (OPS), which provided 50% of the last drawn salary as a lifelong benefit. The announcement has sparked political debate, with some opposition leaders accusing the government of using the scheme to gain favor ahead of upcoming assembly elections in four states. Critics argue that the scheme might increase the financial burden on state governments. Supporters, however, view it as a historic step by the Modi administration to address longstanding employee concerns.