These include increase in Dearness Allowance (DA), bonus, revision in CGHS rates, extension of Unified Pension Scheme (UPS) deadline and Digital Life Certificate campaign.
More than 1 crore benefited
More than 1 crore (10 million) central employees and pensioners will get direct benefits from these decisions of the government. On one hand, these steps will provide economic relief through increase in salary and pension, on the other hand, new policies related to health and pension will bring ‘Ease of Living’. Let us tell you that this package of the government is being considered as part of the strategy to increase the confidence of the employees amidst inflation and increasing health expenses.
1. 3% increase in DA and dearness relief DR.
Ahead of the festive season, the central government has announced a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR) for its employees and pensioners. This increase will be considered effective from July 1, 2025. This decision will directly benefit about 49 lakh government employees and 68 lakh pensioners. Now the total DA has increased from 55% to 58%. The government revises DA every six months to balance the impact of inflation. The next amendment will come into effect from January 2026 and will be announced in March, before Holi.
2. Big change in CGHS rates after 15 years
The government has made a major revision in the rates of treatment and medical packages under the Central Government Health Scheme (CGHS). This is being said to be the biggest change in the last 15 years. The new rates come into effect from October 13, 2025, and will benefit approximately 46 lakh CGHS beneficiaries. The new rates have brought down the cost of many medical procedures, which will provide relief to both employees and pensioners. Along with this, the government has also strengthened the facilities of digital CGHS card, online appointment system and cashless treatment.
3. Announcement of bonus to central employees
The Finance Ministry has recently issued orders that Group C and Non-Gazetted Group B employees will be given an ad-hoc bonus equal to 30 days’ salary for 2024-25. This amount has been fixed at ₹6,908. At the same time, the Department of Posts of the Ministry of Communications has issued a separate order announcing that its employees will be given Productivity-Linked Bonus (PLB) equal to 60 days’ salary. Its benefit will be available to Group C, Multi Tasking Staff (MTS), Non-Gazetted Group B, Gramin Dak Sevak (GDS) and full-time temporary employees. The government has decided to release this bonus before Diwali, so that the employees can get financial relief and happiness on the occasion of the festival.
4. Reforms and deadlines extended in the Unified Pension Scheme (UPS)
The government has decided to provide better retirement and gratuity benefits to employees under the new Unified Pension Scheme (UPS). Under this scheme, employees will now get more stability and security as compared to the National Pension System (NPS). The government has also extended the last date for joining UPS to 30 November 2025. This scheme came into effect from April 1, 2025, and till now its deadline has been extended twice. This decision will give government employees more confidence and stability for their future.
5. Digital Life Certificate facility for pensioners
Now the compulsion for central pensioners to go to the bank every year and submit the life certificate is over. The government has now given them the option to submit digital life certificate. Pensioners can submit the certificate from the comfort of their home through their mobile phone or face authentication app. This facility has been started with the aim of providing relief to senior citizens from long queues at the bank.