The Central Government has recently made many important announcements for its employees, which are going to directly benefit crores of employees and pensioners. These decisions can prove to be a relief on all three fronts – salary, pension and gratuity.
1. Eighth Central Pay Commission got approval
The government has given formal approval to the formation of the Eighth Central Pay Commission. The chairmanship of the commission has been handed over to retired Supreme Court judge Ranjana Prakash Desai. The commission will have to submit its final report to the government within 18 months. It is believed that the recommendations of the Commission may be implemented from January 1, 2026. After the arrival of this report, there is a possibility of revision in the salaries of central employees, which can lead to a significant increase in their income. This will be the biggest change after the last Seventh Pay Commission, which will bring relief to the employees amid inflation and rising expenses.
2. Got another chance to change the pension plan
The government has provided another opportunity to its employees to change the pension scheme. Earlier the last date for this change was fixed as 30 September 2025, which has now been extended to 30 November 2025. Under this facility, those employees, who had earlier opted for the Unified Pension Scheme (UPS), can now switch to the National Pension System (NPS) if they wish. The government believes that this step will give employees an opportunity to make appropriate choices as per their economic future. However, it is worth noting that this opportunity is for a limited period and as the last date is approaching, interested employees will have to decide soon.
3. Gratuity limit increased to Rs 25 lakh
Giving the third big gift to the employees, the Central Government has increased the maximum limit of gratuity from Rs 20 lakh to Rs 25 lakh. This change is considered to be a significant improvement in the benefits received after retirement. However, the Department of Pension and Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances and Pensions, has clarified that this benefit will be available only to those employees who are covered under the Central Civil Services (Pension) Rules 2021 or Central Civil Services (Payment of Gratuity under NPS) Rules 2021. This means that employees of banks, RBI, PSUs, universities, state governments or autonomous institutions will not come under the purview of this decision, as they are working as per their own rules.