Mohan Majhi government announces unified pension scheme for employees in Odisha

Odisha government aligns with Central Government's Unified Pension Scheme, approves construction of block level stadiums and Antoday Griha Yojana.

The Mohan Majhi government has announced to implement Unified Pension Scheme (UPS) for government employees in Odisha, aligning it with the Central Government’s policy.

The Cabinet chaired by Mr. Majhi on Friday (February 7, 2025), gave approval to implementation of UPS for those employees who are considered eligible for pension under the National Pension Scheme system.

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“As you all know, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the UPS on August 24, 2024. Keeping in view the requests of various service organisations to determine appropriate pensions and factoring in compulsory pension, family pension and inflation, the Union Government has further improved the existing NPS and implemented this Unified Pension System. It is targeted to be implemented from April 1, 2025. Accordingly, the Odisha Government has also decided to implement the UPS for its employees,” said CM.

As per the Cabinet decision, there will be assured pension for employees, who complete 25 years of services. “Pension will be available at the rate of 50% of the average basic pay or basic pay earned in the 12 months preceding retirement. Pension will be paid proportionately for the period of service starting from a minimum period of 10 years to 25 years,” it said.

Similarly, family pension will be paid at the rate of 60% of the pension that the employee was drawing before death. The State Government said the minimum monthly pension will be ₹10,000 for completion of 10 years of service. Dearness relief will be applied on pension on basis of Consumer Price Index. Employees under NPS can decide to opt for UPS or remain affiliated with NPS.

It is to be noted that in UPS, there will be a guaranteed family pension benefit in case of death of a government employee after retirement, which was not applicable in NPS.