Inclusion of ESIC Employees in Unified Pension Scheme: Autonomous Bodies are not included in UPS
New Delhi, September 8, 2025 – The Ministry of Labour & Employment has issued an important clarification regarding the inclusion of employees working in the Employees’ State Insurance Corporation (ESIC) under the Unified Pension Scheme (UPS).
In continuation of an earlier ESIC Headquarters Office Memorandum dated June 4, 2025, the Ministry has forwarded a communication from the Department of Financial Services (DFS), Ministry of Finance, through Office Memorandum No. FX-11/20/2025-PR dated August 19, 2025. This clarification outlines the applicability of the Unified Pension Scheme for employees of Autonomous Bodies (ABs), including ESIC.
Background of Unified Pension Scheme
The Government of India, vide its notification dated January 24, 2025, introduced the Unified Pension Scheme as an option under the National Pension System (NPS) for Central Government employees covered under NPS. This scheme is aimed at providing enhanced retirement benefits through a unified pension framework.
Applicability to Autonomous Bodies
The DFS has clarified that, as of now, employees of Autonomous Bodies (ABs) are not included in the Unified Pension Scheme. This means that while Central Government employees under NPS have been given the choice to opt for UPS, employees of ESIC and other ABs remain outside its purview.
Official Communication
The Office Memorandum was issued with the approval of the Competent Authority, and copies have been circulated to:
- Director Generals, Regional & Sub-Regional Offices
- ESIC Hospitals and Medical Education Institutions
- Establishment and Finance Divisions of ESIC
- The ESIC Website for public access
What This Means for ESIC Employees
While the government has taken steps to expand pension options for Central Government employees, ESIC employees will have to wait until further notifications are issued regarding their inclusion. The matter remains under consideration, and future decisions could potentially extend UPS benefits to autonomous bodies.
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