Last Date to Join UPS Pension Scheme Extended till 30 November 2025
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The government has extended the last date to join Unified Pension Scheme-UPS by two months i.e. till 30th of November this year. Earlier, the last date was 30 September 2025.
The Ministry of Finance said that it received requests from various stakeholders that some more time needs to be given to employees to evaluate the changes announced in UPS Scheme.
As per reports, the central government employees are not happy with the new pension scheme. Only about one lakh out of 23 lakh central government employees have so far chosen the new Unified Pension Scheme (UPS). As of July 20, 2025, only 30,989 employees out of the approximately 23 lakh (2.3 million) enrolled in NPS have chosen to switch to UPS.
Originally, the deadline to opt into UPS was June 30, 2025, but due to the low response, the government quietly extended it to September 30, 2025. Now again the deadline has been extended to 30 November 2025.
NPS vs UPS Differences
| Feature | National Pension System (NPS) | Unified Pension Scheme (UPS) |
| Type | Market-linked Investment Scheme | Hybrid Pension Scheme (Guaranteed pension with contribution model) |
| Applicable To | Government and private-sector employees, NRIs, self-employed individuals | Central government employees (may extend to state employees) |
| Employee Contribution | 10% of basic salary + Dearness Allowance (DA) | 10% of basic salary + Dearness Allowance (DA) |
| Government Contribution | 14% of basic salary + Dearness Allowance (DA) | 8.5% of basic salary + Dearness Allowance (DA) |
| Pension Calculation | Depends on investment performance and annuity plan | 50% of average basic pay over the last 12 months (for employees with 25+ years of service) |
| Lump Sum Payout at Retirement | 60% of corpus (tax-free), 40% annuitised | No |
| Family Pension | Depends on the annuity plan chosen | 60% of the last pension drawn given to family |
| Inflation Protection (DA Revisions) | No guaranteed DA revision | Yes, inflation-linked adjustments |
| Tax Benefits | Tax deductions under Sections 80C, 80CCD (1B), and 80CCD (2) | Taxation details are yet to be clarified |
| Risk Factor | Market-dependent returns, no guaranteed pension | No market risk, assured pension |
| Gratuity Benefits | Yes | Yes |
| Flexibility in Investment | Choice of fund managers and investment options | Not applicable |
| Sustainability | Sustainable, self-funded through investments | Balanced approach with government support |
Download Unified Pension Scheme (UPS) Gazette PDF
