Tamil Nadu launched a new pension plan on Jan. 3, 2026, guaranteeing public workers 50% of their final salary, with the state paying 90%.

On January 3, 2026, Tamil Nadu Chief Minister M.K. Stalin introduced the Tamil Nadu Assured Pension Scheme (TAPS), which guarantees government workers and teachers a pension equal to 50% of their most recent salary. The state will cover 90% of the costs, including an initial ₹11,000 crore annual expenditure. The program includes biannual dearness allowance adjustments, family pensions of 60% upon death, minimum pensions for early retirees, and compassionate pensions for individuals impacted by previous pension changes. Employees contribute 10% of the total. The government describes TAPS as a significant step toward long-term financial security for public sector workers, and the move comes after union threats of a strike over the outdated pension system.