The Assam cabinet has approved the introduction of the Unified Pension Scheme (UPS) for state government employees, marking a significant step towards ensuring old-age security and streamlining pension management. This decision, announced on Monday, aligns Assam with the central government's initiative to merge various pension systems into a single, unified structure.
Chief Minister Himanta Biswa Sarma stated that the UPS aims to resolve the long-standing debate between the Old Pension Scheme (OPS) and the New Pension Scheme (NPS). The central government introduced the Unified Pension Scheme on August 24, 2024, and it came into effect on April 1, 2025.
Under the UPS, employees with 25 years of service will be eligible for pension benefits similar to those under the OPS. Employees completing 10 years of service will receive a pension along with Dearness Allowance (DA) and other benefits. The scheme guarantees a pension of 50% of the average basic pay drawn during the last 12 months of service for employees with at least 25 years of employment. Those with a minimum of 10 years of service will be entitled to a minimum pension of Rs 10,000 per month upon retirement. In the event of a pensioner's death, 60% of the pension amount received before their demise will be provided to their family as a family pension.
The government's contribution under the UPS will increase from 10% to 18.5%, significantly enhancing the post-retirement benefits of state government employees. This move aims to align Assam's pension structure with that of central government employees, ensuring parity in long-term financial security.
The Assam government has provided employees with a one-year window to choose between the UPS and the NPS. According to Sarma, employees who wish to remain under the NPS will continue to enjoy higher benefits in that system, and those who opt for UPS will have their contributions in NPS automatically transferred to the UPS account.
The UPS is designed to provide a balanced model that combines the fiscal sustainability of the NPS with the guaranteed benefits of the OPS. By adopting the UPS, Assam aims to provide better retirement security to government employees while maintaining fiscal balance. The Chief Minister has asserted that the introduction of the UPS will end the debate between NPS and OPS.
The Sadou Asam Karmachari Parishad (SAKP), an organization representing government employees in Assam, has announced a statewide convention on October 12, 2025, in Guwahati to discuss the implications of the UPS for Assam's employees.
