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Govt Extends NPS Tax Benefits to New Unified Pension Scheme
The Daily Guardian
|July 05, 2025
The Finance Ministry has announced that all tax benefits available under the National Pension System (NPS) will also apply to the Unified Pension Scheme (UPS).
The announcement is a significant move that will make UPS more attractive for central government employees.
The Unified Pension Scheme was introduced earlier this year as an option under NPS for recruits joining the central government civil services from April 1, 2025.
Existing government employees who are already under NPS have also been given a one-time option to switch to UPS.
To make this new pension plan smoother to implement, the Pension Fund Regulatory and Development Authority (PFRDA) issued the necessary rules and regulations in March 2025.
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