UPS Calculator

Calculate UPS (Unified Pension Scheme) Returns Online

The government announced the Unified Pension System (UPS) in August 2024 for all Central Government employees from 1 April 2025. It can also be extended to State Governemnt employees. Employees covered under the National Pension Scheme (NPS) can switch to UPS and get an assured pension amount. The UPS combines the features of the Old Pension Scheme (OPS) and the National Pension Scheme (NPS), ensuing assured pension amounts upon retirement.

The Unified Pension Scheme (UPS) calculator allows an individual to compute the monthly pension amount expected at retirement based on the prior 12 months salary drawn by the individual immediately before retirement and the service years. The UPS calculator only illustrates the tentative pension and does not guarantee the exact figure.

What is the UPS Calculator?

One tool that can help you determine your pension amount upon retirement is a UPS calculator. By providing a few simple details, you can get an idea of the pension amount you will get every month after retirement, depending on the years of service, which will help you with your financial planning post-retirement. 

How is UPS pension calculated?

All government employees who have 25 years of service or more and are covered under UPS will get an assured pension of 50% of the average basic pay over the last 12 months before retirement. 

The minimum pension is Rs.10,000 per month. However, only employees who have completed 10 years of service will get the minimum pension under UPS.

Employees who have a service of 10 to 24 years will get a proportionate amount as a pension, depending on the years of service.

The family of the deceased employee will receive a family pension of 60% of the pension amount received immediately before the demise.

How Does the UPS Calculator Work?

You can see the predicted monthly pension amount using the UPS calculator. You can also view the family pension provided under the UPS to your family after your demise, which helps to secure your family’s financial situation. 

Illustration on UPS Calculation

Let’s consider examples to elucidate how the UPS calculator computes the monthly pension when employees have different years of service.

Example 1:

• Mr. A is a Central Government employee who retires after 25 years of service. 
• He had a basic pay of Rs.7.2 lakh p.a. before his retirement. 
• His average monthly basic pay will be 7,20,000/12 = Rs.60,000
• Since he has 25 years of service, his monthly pension will be 50% of his average monthly basic pay.
• Thus, his monthly pension will be 60,000 x 50/100 = Rs.30,000

Example 2:

• Mr. B is a Central Government employee who retires after 15 years of service. 
• He had a basic pay of Rs.4.8 lakh p.a. before his retirement. 
• His average monthly basic pay will be 4,80,000/12 = Rs.40,000
• Since he has 15 years of service, his monthly pension will be paid on a proportionate basis for 15 years.
• His monthly pension will be 40,000 x (50/100) x (15/25) = Rs.12,000

Example 3:

• Mr. C is a Central Government employee who retires after 10 years of service. 
• He had a basic pay of 3 lakh p.a. before his retirement. 
• His average monthly basic pay will be 3,00,000/12 = Rs.25,000
• His monthly pension will be paid on a proportionate basis for 10 years.
• The proportionate monthly pension will be 25,000 x (50/100) x (10/25) = Rs.5,000.
• However, his monthly pension will be Rs.10,000 since the UPS provides an assured minimum pension of Rs.10,000 per month when the actual pension calculation is less than Rs.10,000. 

Who can use the UPS calculator?

The UPS calculator can be used by all government employees covered under the Unified Pension Scheme or switch to the Unified Pension Scheme from the National Pension Scheme.

How to Use the UPS Calculator?

The calculator needs the following information to determine how much pension you will get after retirement:

• Monthly average basic pay/salary 
• Years of service
• Pension amount or family pension amount

Compute UPS (Unified Pension Scheme) Returns Online

Using the UPS (Unified Pension Scheme) calculator, one can determine the monthly pension amount that a UPS subscriber can expect after retirement. Plus, his/her family members can use the UPS calculator to check the family pension they will receive after the retired employee’s demise. A family pension is the pension amount given to the family members upon the death of a retired government employee.