Assam Implements Unified Pension Scheme: Government Contribution Increases to 18.5% from Previous 10%

Assam Chief Minister Himanta Biswa Sarma announced on Monday that the state government has implemented the Unified Pension Scheme (UPS), a modified version of the National Pension System (NPS) recently introduced by the Central Government.

Chief Minister Sarma stated, "The government contribution under NPS was 10 percent, but with UPS implementation, it will rise to 18.5 percent. The state government has adopted the identical scheme that central government employees receive. State government employees will now enjoy the same benefits."

Sarma further explained that current employees will have a one-year timeframe to decide whether to remain with NPS or transition to UPS. "If an employee chooses UPS, their accumulated NPS contributions will automatically transfer to their UPS account," he clarified.

"I believe the implementation of this scheme finally concludes the debate between NPS and OPS," Sarma remarked.

The UPS applies to government employees covered under the National Pension System who select this option within NPS, which became effective January 1, 2004.

In August last year, the Union Cabinet under Prime Minister Narendra Modi's chairmanship approved the UPS. The old pension scheme, which ended in January 2004, provided employees with 50 percent of their last drawn basic pay as pension. Unlike the OPS, UPS is contributory, requiring employees to contribute 10 percent of their basic salary and dearness allowance, while the employer contributes 18.5 percent.

With this adoption, Assam becomes one of the first states to align its pension policy with the national framework.