Prepared by Finin2min Editorial Desk · Rates and rules verified 5 October 2026
The Unified Pension Scheme (UPS) promises 50% of your average basic pay of the last 12 months after 25 years of service. NPS gives a market-linked corpus. Enter your service and pay details to compare the two and find the NPS return you would need to match UPS.
UPS side: the assured payout is 50% of the average basic pay of the last 12 months before retirement, scaled down proportionately for service between 10 and 25 years (minimum ₹10,000 a month if you have 10 years). The superannuation lump sum adds one-tenth of (pay + DA) for each completed six months of service. The payout rises with dearness relief, which you set as a yearly percentage.
NPS side: your corpus grows with your return and with contributions of 10% (employee) + 14% (Government) of basic + DA. At retirement 60% is a tax-free lump sum and 40% buys an annuity at the rate you enter.
Both streams are valued at retirement using your discount rate, so you can see which has the higher present value, and the break-even NPS return is the return at which NPS equals UPS.
UPS gives certainty and inflation indexation but a ceiling of about half of your last pay. NPS can give more if markets do well and less if they do not, and the annuity part is fixed in rupees. If the break-even NPS return is well below the return you realistically expect, NPS is attractive; if it is close to or above it, UPS’s guarantee is worth more.
50% of the average basic pay of the last 12 months before superannuation for a minimum of 25 years of qualifying service. For 10 to 25 years it is proportionate, with a minimum of ₹10,000 a month.
Yes. At superannuation you receive a lump sum equal to one-tenth of monthly pay + DA for every completed six months of service, in addition to the assured payout and gratuity.
60% of the payout the employee was receiving at the time of death.
No. The Government allowed a one-time option for NPS subscribers to switch to UPS and the switch cannot be reversed.
Both the assured payout and the family pension get dearness relief, in the same way as for pensioners under the old scheme.
Rates and rules shown here were checked against the sources above on 5 October 2026. Government notifications can change a rate or rule at short notice; always confirm on the official site before you invest, file or claim.
Educational estimate only. Tax, legal, financial or regulatory treatment depends on facts and the law applicable to the relevant period. Verify the current official source or obtain professional advice before acting.
Scope: Comparison of the UPS assured payout and lump sum with an NPS corpus and annuity for a central government employee.
The calculation engine was checked against an independently written reference implementation across 768 UPS-vs-NPS input combinations, and against published figures where the scheme publishes them. Review date: 5 October 2026.
Prepared by Finin2min Editorial Desk. Educational estimate only.
Background, worked examples and the rules behind these numbers.