Assam Cabinet Approves Unified Pension Scheme for State Government Employees

Assam Cabinet Introduces Unified Pension Scheme to Secure Future of State Government Employees
Guwahati, October 6, 2025: In a landmark policy decision aimed at ensuring long-term financial security for state government employees, the Assam Cabinet has approved the implementation of the Unified Pension Scheme (UPS). The newly introduced system will replace the existing National Pension System (NPS) for employees who choose to opt in, guaranteeing assured post-retirement benefits.
Under the UPS, employees will receive a fixed pension amounting to 50% of the average basic pay of the last 12 months before retirement. In addition, a family pension equivalent to 60% of the employee’s pension will be provided in case of death before superannuation. The scheme also offers a lump-sum retirement benefit, calculated at 10% of monthly emoluments (basic pay plus dearness allowance) for every six months of completed qualifying service.
Announcing the decision, Chief Minister Dr. Himanta Biswa Sarma stated that the Unified Pension Scheme represents a balanced approach between the Old Pension Scheme (OPS) and the NPS, offering both stability and sustainability. “The Government of India has adopted the UPS scheme, which is a modified version of the NPS. In NPS, the government’s contribution was 10%, but under UPS, it will increase to 18.5%,” the Chief Minister said. “The state government has adopted the same scheme for its employees, ensuring parity with central government benefits,” he added.
According to the Chief Minister, employees currently enrolled under NPS will be given a one-year window to decide whether they wish to continue under NPS or switch to UPS. “If someone adopts UPS, their contribution in NPS will be automatically transferred to the UPS account,” Sarma clarified.
The UPS promises to provide government employees with assured pension benefits upon superannuation or voluntary retirement, subject to the completion of the required qualifying service. It is designed to safeguard the welfare of both employees and their families, ensuring stability after retirement.
Dr. Sarma emphasized that the introduction of the Unified Pension Scheme will end the long-standing debate between the NPS and OPS systems. “With the adoption of this scheme, the debate between NPS and OPS has finally come to an end,” he declared.
This major reform is expected to enhance financial assurance for thousands of government employees in Assam while maintaining fiscal discipline. By aligning with the newly introduced national framework, the Assam government’s move underscores its commitment to employee welfare and sustainable economic management.
In today's meeting of #AssamCabinet, we resolved to
— Himanta Biswa Sarma (@himantabiswa) October 6, 2025
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