How to use the UPS vs NPS calculator
- Enter your age, your retirement age and your total service at retirement.
- Enter your basic pay a month today and the yearly rise you expect.
- Set the return you expect on the NPS corpus.
- Open the extra options to change DA, the pay commission timing, the annuity rate and share, or a UPS final withdrawal.
- Compare the monthly pension, the lump sum and the income 10 years after retirement.
UPS pension formula
Assured payout = (P ÷ 2) × (Q ÷ 300)
P is your average basic pay of the last 12 months. Q is your qualifying service in months, up to 300. Below 120 months there is no assured payout. The payout is at least ₹10,000 a month, and dearness relief is added at the DA rate. With a last basic pay of ₹1,00,000 and 30 years of service, the payout is ₹50,000 a month.
NPS pension = corpus × annuity share × annuity rate ÷ 12
Under NPS, at least 40% of the corpus buys an annuity and up to 60% can be taken as a lump sum. The pension depends on the corpus, which depends on your pay and the market return.
UPS payout by basic pay and service
Monthly assured payout before dearness relief, for the average basic pay of the last 12 months.
| Service | ₹50,000 basic | ₹1,00,000 basic | ₹1,50,000 basic | ₹2,00,000 basic |
|---|---|---|---|---|
| 10 years | ₹10,000 | ₹20,000 | ₹30,000 | ₹40,000 |
| 15 years | ₹15,000 | ₹30,000 | ₹45,000 | ₹60,000 |
| 20 years | ₹20,000 | ₹40,000 | ₹60,000 | ₹80,000 |
| 25 years | ₹25,000 | ₹50,000 | ₹75,000 | ₹1,00,000 |
| 30 years | ₹25,000 | ₹50,000 | ₹75,000 | ₹1,00,000 |
UPS lump sum by service
One tenth of last basic pay + DA (60% today) for every completed six months of service.
| Service | Six-month blocks | ₹50,000 basic | ₹1,00,000 basic | ₹1,50,000 basic |
|---|---|---|---|---|
| 10 years | 20 | ₹1,60,000 | ₹3,20,000 | ₹4,80,000 |
| 20 years | 40 | ₹3,20,000 | ₹6,40,000 | ₹9,60,000 |
| 25 years | 50 | ₹4,00,000 | ₹8,00,000 | ₹12,00,000 |
| 30 years | 60 | ₹4,80,000 | ₹9,60,000 | ₹14,40,000 |
| 35 years | 70 | ₹5,60,000 | ₹11,20,000 | ₹16,80,000 |
UPS final withdrawal and the payout
For a ₹50,000 payout (₹1,00,000 last basic, 30 years). The lump sum above is paid in every case.
| Corpus withdrawn | Payout kept | Monthly payout |
|---|---|---|
| None | 100% | ₹50,000 |
| 20% | 80% | ₹40,000 |
| 40% | 60% | ₹30,000 |
| 60% | 40% | ₹20,000 |
UPS vs NPS rules at a glance
- Contributions: you pay 10% of basic + DA in both. The government pays 10% + about 8.5% to a pool under UPS, and 14% to your account under NPS.
- UPS family payout: 60% of the payout to the spouse, with dearness relief.
- Voluntary retirement after 25 years: the UPS payout starts from the date you would have retired normally.
- Resignation or dismissal: no assured payout; the corpus is paid out.
- Switch back from UPS to NPS: once, at least 1 year before retirement or 3 months before voluntary retirement.
Who can choose UPS, the deadline, tax, the family payout and a full UPS vs NPS vs OPS table are explained in simple words on the Unified Pension Scheme page.
Frequently asked questions
How is the UPS pension calculated?
Assured payout = 50% of your average basic pay of the last 12 months × (months of service ÷ 300). With 25 years (300 months) or more you get the full 50%. With a last basic pay of ₹1,00,000 and 30 years of service, the payout is ₹50,000 a month, plus dearness relief.
What is the minimum pension under UPS?
₹10,000 a month, plus dearness relief, if you retire on superannuation with at least 10 years of service. With less than 10 years there is no assured payout.
How is the UPS lump sum calculated?
One tenth of your last monthly basic pay + DA for every completed six months of service. For ₹1,00,000 basic, 60% DA and 30 years (60 six-month blocks), that is ₹9,60,000. It is paid on top of the monthly payout and does not reduce it.
Does taking 60% of the corpus reduce the UPS pension?
Yes. UPS lets you withdraw up to 60% of your corpus at retirement, but the payout falls in the same proportion. Take 60% and you get 40% of the payout for life. If you take nothing, the whole payout is paid and the corpus goes to the government pool.
Why does NPS build a bigger corpus than UPS?
Under NPS the government puts 14% of basic + DA into your account. Under UPS it puts 10% into your account and about 8.5% into a separate pool that pays for the assured payout. Your own share is 10% in both.
Does the NPS pension increase with inflation?
A normal NPS annuity pays a fixed amount for life. The UPS payout gets dearness relief at the DA rate, so it rises when DA rises. The calculator shows both over 25 years.
What annuity rate should I use for NPS?
Use the rate an insurer quotes today for the annuity type you would choose. Rates change with interest rates. An annuity that returns the purchase price to your nominee, or that continues to your spouse, pays less than a life-only annuity.