UPS vs NPS calculator: compare the Unified Pension Scheme with NPS
The Unified Pension Scheme (UPS), in force from 1 April 2025 for central government employees under NPS, pays an assured pension of 50% of the average basic pay of the last 12 months after 25 years of service (pro-rata from 10 years, minimum ₹10,000), plus Dearness Relief, and a lump sum at retirement. NPS builds a market-linked corpus; at retirement you can take up to 60% as a lump sum and use at least 40% for an annuity. UPS gives certainty; NPS can give more or less depending on returns.
Key facts Last verified: 25 Sep 2026
| Item | Details | Source |
|---|---|---|
| UPS in force | 1 April 2025 (option for central government NPS subscribers) | Ministry of Finance / PFRDA |
| Assured pension | 50% of average basic pay of last 12 months after 25 years; pro-rata for 10–25 years | PFRDA UPS regulations |
| Minimum | ₹10,000 a month after at least 10 years | PFRDA |
| Contributions | Employee 10%; Government 18.5% (10% to individual corpus + 8.5% to pool) | Ministry of Finance |
| Lump sum | 1/10th of monthly pay + DA for every completed six months of service | Ministry of Finance |
| Switch | One-time, one-way option to move from UPS back to NPS | Ministry of Finance |
UPS vs NPS at a glance
| UPS | NPS | |
|---|---|---|
| Pension | Assured: 50% of last-12-month average basic (25 yrs) | Depends on corpus and annuity rate |
| Inflation protection | Dearness Relief on pension | Usually none on annuity |
| Minimum | ₹10,000 (10+ years) | None |
| Lump sum | 1/10th of monthly pay+DA per 6 months of service | Up to 60% of corpus |
| Family pension | 60% of pension | Depends on annuity chosen |
| Risk | Government bears market risk | You bear market risk |
How to read the calculator
Enter your current basic pay, years to retirement, total service at retirement, and your assumptions for DA, pay growth, NPS returns and annuity rate. The results show UPS monthly pension and lump sum versus NPS monthly pension (from 40% annuity) and 60% lump sum. Remember:
- UPS pension also gets Dearness Relief every six months; NPS annuity usually doesn’t.
- Future pay commissions raise pay — increase the growth rate to test that.
- Small changes in NPS returns (8% vs 10%) make a big difference over 20+ years.
Frequently asked questions
What is the difference between UPS and NPS?
UPS gives an assured, inflation-linked pension (50% of the last-12-month average basic after 25 years). NPS gives a market-linked corpus from which you buy an annuity.
What is the minimum pension under UPS?
₹10,000 a month for employees with at least 10 years of qualifying service.
Can I switch from UPS to NPS?
Yes, once and only one way (UPS to NPS), within the time limits set by the Government.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- PFRDA (NPS / UPS)Regulations and FAQs
- Protean CRA (NPS accounts)PRAN statements and services
Disclaimer: HumainOne is an independent information website. We are not affiliated with UIDAI, the Income Tax Department, EPFO, NPCI, the Election Commission, the Government of Maharashtra or any government body. We do not accept applications, documents or fees. Information is checked against official sources on the date shown but rules change — always confirm on the official website before acting. Calculators give estimates, not official figures, and this is not tax or legal advice.