What’s inside:
This article shares the latest updates for central government employees and pensioners, including salary increases, bonuses, and new health benefits.
Before Diwali, the Central Government has announced a significant package for its employees and pensioners. This comes as a relief for over 1 crore (10 million) beneficiaries, even though there’s no news yet on the 8th Pay Commission. The government made five important announcements this festive season.
One of the key updates is a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners, effective from July 1, 2025. This increase raises the total DA from 55% to 58%, directly benefiting about 49 lakh government employees and 68 lakh pensioners.
Another major change is in the Central Government Health Scheme (CGHS) rates, which have been revised for the first time in 15 years. The new rates, effective from October 13, 2025, will lower the costs of many medical procedures for around 46 lakh CGHS beneficiaries. Additionally, Group C and Non-Gazetted Group B employees will receive an ad-hoc bonus equivalent to 30 days’ salary.
Other important updates include the extension of the Unified Pension Scheme (UPS) deadline to November 30, 2025, offering better retirement benefits. Plus, pensioners now have the option to submit their life certificates digitally, eliminating the need for annual bank visits.
Going forward, these changes aim to provide financial relief and improved living conditions for central government employees and pensioners. Updates regarding the next Dearness Allowance revision are expected in March ahead of Holi.
Summary:
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- 3% increase in Dearness Allowance for employees and pensioners.
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- Revised CGHS rates for better healthcare benefits.
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- Ad-hoc bonus of 30 days’ salary announced for specific employee groups.
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- Deadline for the Unified Pension Scheme extended to November 30, 2025.
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- Pensioners can now submit life certificates digitally.
