Ginti India

UPS vs NPS Calculator

Enter your basic pay and service to compare the UPS assured payout with what NPS would pay, side by side.

Basic pay today (Rs. a month)

Rs.

DA (% of basic)

Years of service so far

Years until you retire

Yearly rise in basic pay (%)

NPS return (% a year)

Annuity rate (% a year)

NPS corpus used for the annuity (%)

NPS corpus today (Rs.)

Rs.

UPS pays Rs. 74,307 a month more than the NPS annuity at the start, and its payout rises with dearness relief while the annuity stays fixed. NPS leaves you Rs. 1,96,83,265 more in hand at retirement, because under UPS your Rs. 2,93,48,180 individual corpus goes to the pool that pays the assured payout.

Unified Pension Scheme

Payout a month at retirement, with DR

Rs. 1,44,742

Rises with dearness relief

Assured payout before DR: Rs. 90,464
Lump sum at retirement: Rs. 14,47,425
Family payout (60%): Rs. 86,845
Corpus handed to the pool: Rs. 2,93,48,180

National Pension System

Annuity a month at retirement

Rs. 70,436

Fixed for life

Corpus at retirement: Rs. 3,52,17,817
Lump sum at retirement: Rs. 2,11,30,690
Used for the annuity: Rs. 1,40,87,127
Government puts in: 14% of basic + DA

What you entered

Basic pay: Rs. 56,100DA: 60%Service at retirement: 25 yearsNPS return: 9%

1
Basic pay in your last year of service
Rs. 56,100 × (1 + 5%)^24= Rs. 1,80,928
2
Basic + DA at 60% in that year
Rs. 1,80,928 × (1 + 60%)= Rs. 2,89,485
3
UPS assured payout: half the basic pay, scaled by service (300 of 300 months), at least Rs. 10,000
Rs. 1,80,928 ÷ 2 × 300 ÷ 300= Rs. 90,464 a month
4
UPS payout with dearness relief at 60% (it rises with DR every year after)
Rs. 90,464 × (1 + 60%)= Rs. 1,44,742 a month
5
UPS lump sum: 10% of a month's basic + DA for every completed six months
10% × Rs. 2,89,485 × 50= Rs. 14,47,425
6
NPS corpus: 24% of basic + DA each month (10% yours, 14% the government's) at 9% a year
300 monthly contributions, compounded= Rs. 3,52,17,817
7
NPS pension: 40% of the corpus buys an annuity at 6% (it stays fixed)
Rs. 3,52,17,817 × 40% × 6% ÷ 12= Rs. 70,436 a month
8
NPS lump sum: the rest of the corpus
Rs. 3,52,17,817 − Rs. 1,40,87,127= Rs. 2,11,30,690

Result

UPS payout less NPS annuity, a month: Rs. 74,307

DA is held at the rate you enter, and dearness relief on the UPS payout uses the same rate; in practice DA restarts at each pay commission and the basic pay jumps instead. Under UPS the individual corpus is assumed to match its benchmark corpus, so the full payout is due; taking part of it out cuts the payout in proportion. Neither side counts gratuity, which both schemes pay.

UPS assured payout and lump sum by length of service

For a final 12-month average basic pay of Rs. 45,000, the example the Finance Ministry's notification of 24 January 2025 uses, with DA and dearness relief at 60%.

Qualifying service	Assured payout a month	With dearness relief at 60%	Lump sum at retirement
10 years	Rs. 10,000	Rs. 16,000	Rs. 1,44,000
15 years	Rs. 13,500	Rs. 21,600	Rs. 2,16,000
20 years	Rs. 18,000	Rs. 28,800	Rs. 2,88,000
25 years	Rs. 22,500	Rs. 36,000	Rs. 3,60,000
30 years	Rs. 22,500	Rs. 36,000	Rs. 4,32,000

The payout is basic / 2 x months of service / 300, capped at 300 months, so it stops growing after 25 years while the lump sum keeps growing. At 10 years the formula gives Rs. 9,000, which the Rs. 10,000 minimum lifts. The lump sum is 10% of a month's basic + DA (Rs. 72,000 here) for every completed six months.

How the UPS payout is worked out

The Finance Ministry's notification of 24 January 2025 sets the assured payout at half the average basic pay of your last 12 months, for 25 years (300 months) of qualifying service or more, and in proportion for less: basic ÷ 2 × months ÷ 300. It is at least Rs. 10,000 a month after 10 years, and dearness relief is added on top. On a final basic of Rs. 45,000 that is Rs. 22,500 after 25 years and Rs. 13,500 after 15 years, the notification's own examples. A lump sum of 10% of a month's basic + DA for every completed six months is paid on retirement, without reducing the payout.

What you give up for the assured payout

Under both schemes you put in 10% of basic + DA. Under NPS the government adds 14% and the whole corpus is yours: at least 40% buys an annuity and up to 60% comes to you as a lump sum. Under UPS the government adds 10% to your individual corpus and about 8.5% to a common pool, and at retirement your corpus goes to the pool in return for the assured payout. So UPS trades a large lump sum for a pension that rises with dearness relief and passes 60% to your spouse.

Frequently asked questions

Which is better, UPS or NPS?

It depends on what you want at retirement. UPS gives a predictable monthly payout that rises with dearness relief, plus a smaller lump sum. NPS gives a much larger lump sum and a fixed annuity whose size depends on market returns. In the default example here (basic Rs. 56,100, 25 years, 5% pay growth, 9% NPS return, 6% annuity), UPS pays about Rs. 1.45 lakh a month at retirement with DR against Rs. 70,436 from the NPS annuity, while NPS leaves about Rs. 2.11 crore in hand against Rs. 14.5 lakh.

What is the minimum pension under UPS?

Rs. 10,000 a month plus dearness relief, for anyone who superannuates after at least 10 years of qualifying service. Below 10 years there is no assured payout. Resignation, removal or dismissal also rules it out.

How is the UPS lump sum calculated?

10% of your monthly basic pay + DA on the date you retire, for every completed six months of qualifying service. With 25 years of service and Rs. 72,000 of basic + DA, that is 10% × Rs. 72,000 × 50 = Rs. 3.6 lakh. It is paid in addition to gratuity and does not reduce the assured payout.

What happens to my NPS corpus if I choose UPS?

It is moved into your UPS individual corpus. At retirement the value of that corpus, up to the benchmark corpus PFRDA works out for you, goes to the pool that pays the assured payout; anything above the benchmark is paid to you. If it is below the benchmark, the payout is cut in proportion unless you top it up.