New Pension Scheme

New Pension Scheme for Central Government Employees: ₹10,000 Minimum Pension, Family Pension Benefits and More Explained

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New Delhi – A new pension scheme launched by the Central Government on April 1, 2025, promises increased financial security for central government employees and their families. The scheme ensures a minimum guaranteed pension of ₹10,000 per month and a robust family pension plan, marking a major shift from the previous pension provisions under the National Pension System (NPS).

New Pension Scheme

Minimum Guaranteed Pension of ₹10,000

Under the new scheme, the minimum pension amount has been fixed at ₹10,000. Eligible employees will receive 50% of the average basic salary drawn during the last 12 months before retirement, provided they have completed 25 years of qualifying service.

Employees who serve at least 20 years but less than 25 will receive a pro-rata pension. Additionally, on retirement, employees are entitled to a lump-sum benefit along with gratuity, adding more financial cushion post-retirement.

Family Pension Provision: 60% of Pension

One of the most notable features is the family pension provision. In case of the employee’s death, their family is entitled to receive 60% of the pension amount the employee was eligible for. This ensures that the family continues to have a steady source of income in difficult times.

Eligibility: Who Can Avail the Benefits?

This scheme is designed for:

  • Central Government employees who are already enrolled under the NPS and are in service as of April 1, 2025.

  • Employees who are recruited into Central Government services on or after April 2025.

The nomination and claim forms are available online via the Protean CRA website from April 1, 2025. Employees can also opt to submit the form physically if needed.

How This Differs from OPS and NPS

The previous pension scheme—Old Pension Scheme (OPS)—was applicable before January 2004. Under OPS, employees received 50% of their last drawn basic salary as monthly pension without any contribution requirement.

In contrast, the Unified Pension Scheme (UPS), which this new scheme aligns with, is contributory in nature:

  • Employees contribute 10% of their basic salary and dearness allowance.

  • The government contributes 18.5%, making it a shared responsibility and a step toward long-term sustainability.

A Significant Step Towards Retirement Security

The new scheme blends the guaranteed benefit structure of OPS with the self-contributory discipline of NPS, aiming to give employees a more predictable and secure retirement plan. The addition of family pension and lump sum payouts also reflects the government’s commitment to the financial well-being of employees and their dependents.

Author Profile

Ganpat Singh Chouhan
Ganpat Singh Chouhan
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.