Finance Ministry Said, Unified Pension Scheme to Have Same Tax Benefits as NPS | Now NPS tax benefit will be found in unified pension scheme: Finance Ministry announced, know what government employees who choose UPS will get?

Tax benefits received under the National Payment Scheme (NPS) will now also be found in the newly launched Unified Pension Scheme (UPS). The Finance Ministry announced its decision on Friday (July 4).

The ministry said that this step will ensure equality with existing NPS structure and will provide tax relief and incentive to employees choosing UPS.

The Finance Ministry said, “To improve UPS further, the government has decided that available tax benefits under NPS will also apply to UPS with some necessary changes, as it is an option under NPS.”

Employees choosing UPS will get tax relief and savings incentives

The ministry said that this decision would ensure equality between NPS and UPS. Apart from this, employees choosing UPS will get equal level tax relief and savings incentives.

Last month, Union Minister Jitendra Singh said that all the central government employees under UPS will now be eligible for retirement and death gratuity benefits under the Old Pension Scheme (OPS).

Singh said that central government employees under UPS will now be eligible for retirement and death gratuity benefit as per the provisions of Central Civil Services (Payment of Gratuity under National Pension System) Rules 2021.

What is Unified Pension Scheme (UPS)?

Unified Pension Scheme (UPS) is a new pension scheme, which was notified by the central government on 24 January 2025 and it came into force from 1 April 2025. The scheme is an option of the National Pension System (NPS), which guarantees fixed pension income like the Old Pension Scheme (OPS).

Central government employees have been given time till 30 September 2025 to join this scheme. This scheme meets the long -standing demand of government employees.

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