Bhubaneswar: To provide a more secure and assured retirement income, Odisha will implement the Unified Pension Scheme (UPS) for state govt employees, chief minister Mohan Charan Majhi said here on Saturday.
“The state cabinet has approved implementation of UPS for employees currently under NPS,” Majhi said. “This is a significant step towards ensuring financial security for our govt employees post-retirement,” he added.
With this, around 3.33 lakh govt employees in Odisha, who joined service since 2005 and are covered under the National Pension Scheme (NPS), have the option to migrate to UPS or continue with NPS, the CM said.

Unlike the NPS, the UPS guarantees family pension benefits after the employee’s death post-retirement.
Implementation of UPS in Odisha follows the Centre’s decision to reform the pension system in response to demands from various service organisations and implement UPS for central govt employees with effect from April 1 this year. The Union Cabinet approved UPS for central govt employees on Aug 24, 2024.
The new pension system, which reforms the existing NPS, aims to provide enhanced benefits, including assured pension, family pension, and inflation protection to govt employees.
Majhi said employees with 25 years of service in Odisha will receive 50% of their average basic pay of the last 12 months before retirement as pension. Similarly, family members will get 60% of the deceased employee’s pension. The CM said the minimum monthly pension has been set at Rs 10,000 for employees who served at least 10 years.
There would be regular inflation adjustments based on the Consumer Price Index. Apart from the payment of gratuity, there would also be a one-time lumpsum payment post-retirement calculated at one-tenth of the monthly salary for every completed six months, he said. Sources said the govt will notify the modalities for migration from NPS to UPS soon.