Odisha Cabinet approved a proposal to implement the Unified Pension Scheme for state government employees

Bhubaneswar8/2/25:: The Odisha Cabinet on Saturday approved a proposal to implement the Unified Pension Scheme (UPS) for state government employees.

The state cabinet approved the scheme for employees currently eligible for a pension under the National Pension System (NPS). Employees under NPS can choose to opt for UPS or continue with NPS.

The UPS system will be operational in the state from April 1, 2025.

The UPS offers several benefits to state government employees. Those with a minimum qualifying service of 25 years will receive an assured pension amounting to 50 percent of their average basic pay in the last 12 months before retirement. For employees with service periods between 10 and 25 years, a pension will be provided on a pro-rata basis.

Additionally, a family pension amounting to 60 percent of the pension drawn before the employee’s death will be granted. A minimum monthly pension of Rs 10,000 is assured for employees who have completed at least 10 years of service.

The guaranteed pension, guaranteed family pension, and guaranteed minimum pension will be fixed in line with inflation. In the case of service employees, dearness assistance will be available based on the Consumer Price Index for industrial workers. After retirement, in addition to gratuity, a lump sum of one-tenth of the monthly salary drawn on the date of retirement for every complete 6 months will be available as a lump sum. The amount of guaranteed pension will not be reduced due to this amount. In the case of the death of a government employee after retirement in UPS, a guaranteed family pension benefit will be available, which was not available in NPS.