UPS vs NPS vs OPS — Comparison & Calculator
A side-by-side comparison of the three pension systems relevant to Central Government employees, with an interactive calculator to project pension under each scheme.
Scheme Comparison Calculator
Enter your details to see a side-by-side projection of monthly pension under OPS, NPS and UPS. All figures are illustrative.
Your Details
50% of last basic pay + Dearness Relief. Requires 33 years for full pension.
Corpus-based payout. Depends on contributions, tenure and market returns.
50% of average basic pay of last 12 months + DR. Requires 25 years for full pension.
- Your last basic pay is projected by applying the chosen fitment factor to your current basic, then growing it at 3% per year for your remaining years of service.
- OPS pays 50% of last basic pay for 20+ years of service (post-2006 rules), with a pro-rata reduction below that. Dearness Relief is added at the current rate. Minimum pension is ₹9,000.
- NPS assumes monthly contributions of 24% of (Basic + DA) — 10% employee + 14% Government — compounded at your chosen annual return. At retirement, 60% is assumed withdrawn and 40% used to buy an annuity at 6%.
- UPS pays 50% of the average basic pay of the last 12 months for 25+ years of service, with Dearness Relief. Minimum assured pension is ₹10,000. Family pension is 60% of the employee's pension.
- The projections are illustrative only and do not reflect the exact notified rules for each scheme.
Feature comparison table
A simplified overview. Actual benefits depend on your date of joining, eligibility, contribution history, and the rules notified by the Government.
| Feature | OPS (Old Pension Scheme) | NPS (National Pension System) | UPS (Unified Pension Scheme) |
|---|---|---|---|
| Status | Closed for new recruits from 1 Jan 2004 | Applicable from 1 Jan 2004 onwards | Effective 1 April 2025 for eligible employees |
| Nature | Defined Benefit | Defined Contribution | Assured payout |
| Employee contribution | None | 10% of (Basic + DA) | 10% of (Basic + DA) |
| Government contribution | Consolidated Fund of India | 14% of (Basic + DA) | 18.5% of (Basic + DA) |
| Minimum qualifying service | 10 years | No minimum | 10 years for assured payout |
| Assured pension | 50% of last drawn pay (20+ years) | None — corpus-based | 50% of avg basic of last 12 months (25+ years) |
| Family pension | 30% of last drawn pay | Not assured | 60% of employee pension |
| Dearness Relief | Yes | No | Yes |
| Minimum pension | ₹9,000 per month | Not applicable | ₹10,000 per month |
| Market risk | None | Yes | No (assured pension) |
| Choice | Not available to new recruits | Default for 2004+ joiners | Optional for eligible NPS subscribers |
What each scheme means
🏛️ OPS — Old Pension Scheme
The pre-2004 pension system. Under OPS, pension was a defined benefit — 50% of the last drawn basic pay for 33 years of qualifying service, subject to a minimum. No employee contribution was required.
Key features
- Defined-benefit pension
- No employee contribution
- Dearness Relief paid on pension
- Family pension at 30% of last pay
- Closed to new recruits from 1 Jan 2004
Status: Only employees who joined before 1 January 2004 remain covered.
📈 NPS — National Pension System
A defined-contribution scheme introduced for employees who joined on or after 1 January 2004. Contributions are invested in market-linked funds through the PFRDA. The final corpus depends on contributions and market returns.
Key features
- Defined-contribution, market-linked
- Employee contributes 10% of (Basic + DA)
- Government contributes 14%
- Up to 60% corpus can be withdrawn at 60
- Remaining 40% used to buy annuity
Status: Default scheme for Central Government employees recruited from 2004 until UPS became effective in April 2025. Eligible NPS subscribers can opt for UPS.
🛡️ UPS — Unified Pension Scheme
Effective 1 April 2025, UPS is an assured-payout scheme available to eligible Central Government employees currently under NPS. It combines the contribution structure of NPS with an assured pension at retirement.
Key features
- Assured pension, not market-linked
- 50% of average basic pay of last 12 months
- Requires 25+ years of qualifying service
- Family pension at 60% of employee pension
- Minimum assured pension ₹10,000/month
- Dearness Relief paid on pension
Status: Opt-in for eligible NPS subscribers. Once opted, the choice is generally irrevocable.
How the 8th CPC interacts with these schemes
OPS
OPS pensioners receive pension computed on pre-2004 rules, revised periodically by Pay Commissions. When the 8th CPC revises pay for serving employees, the corresponding pension of OPS pensioners is typically revised using the same fitment factor (subject to the notified rules). Dearness Relief continues to be paid.
NPS
Pay revision under the 8th CPC raises the basic pay on which NPS contributions are computed. Both employee and Government contributions increase proportionally. However, the final pension under NPS depends on the accumulated corpus at retirement, not on the fitment factor directly. NPS subscribers who did not opt for UPS continue under the market-linked framework.
UPS
Under UPS, the assured pension is 50% of the average basic pay of the last 12 months. Since the 8th CPC revises basic pay upward, the assured pension rises proportionally for eligible employees. This is one of the most significant interactions: a higher fitment factor under the 8th CPC directly raises the assured pension under UPS. Family pension (60% of employee pension) and Dearness Relief also scale accordingly.
⚠️ Important note
The exact manner in which the 8th CPC interacts with UPS, NPS and OPS will be determined by the official notification. The descriptions above are based on the general framework of each scheme and the stated purpose of UPS. Always verify with the Department of Expenditure / PFRDA notifications.
Which scheme applies to me?
✅ If you joined before 1 Jan 2004
You are covered by OPS. Your pension is defined-benefit, revised by each Pay Commission. No employee contribution is deducted for pension purposes.
✅ If you joined on or after 1 Jan 2004
You are under NPS by default. From 1 April 2025, you may have the option to switch to UPS, subject to eligibility criteria notified by the Government.
✅ If you are already a UPS subscriber
Your assured pension is 50% of average basic pay of the last 12 months. Pay revision under the 8th CPC will directly increase your assured pension at retirement and your family pension.
✅ If you are already retired under NPS
Your pension is based on the corpus and annuity purchased at retirement. The 8th CPC does not directly revise your pension. Refer to PFRDA rules for any specific provisions.