5 Big Government Announcements Bringing Relief to Employees and Pensioners This Diwali

The central government has announced several measures to support its employees and pensioners this Diwali. These steps, including salary hikes, bonuses, healthcare updates, and digital initiatives, aim to ease financial and administrative burdens for over 10 million beneficiaries. Here’s a look at the five major announcements:

1. 3% Increase in Dearness Allowance (DA) and Dearness Relief (DR)

From July 1, 2025, central government employees and pensioners will get a 3% hike in DA and DR. The total DA now stands at 58%, up from 55%, benefiting around 4.9 million employees and 6.8 million pensioners. The next revision will take effect from January 2026.

2. Major Revision in CGHS Rates

For the first time in 15 years, CGHS treatment rates have been significantly updated, helping around 4.6 million beneficiaries. The changes reduce the cost of many medical procedures and strengthen digital facilities, including online appointments and cashless treatment.

3. Productivity-Linked Bonus (PLB) Announced

Group C and Non-Gazetted Group B employees will receive an ad-hoc bonus of ₹6,908 (equivalent to 30 days’ salary). Postal employees will get a 60-day salary PLB for 2024-25. This bonus is being released before Diwali to provide extra financial support during the festive season.

4. Improvements to the Unified Pension Scheme (UPS)

The UPS now offers enhanced retirement benefits, similar to those under the NPS, providing employees with greater security. The government has extended the deadline for switching from NPS to UPS to November 30, 2025, ensuring new employees have more time to opt in.

5. Digital Life Certificate for Pensioners

Pensioners no longer need to visit banks annually to submit their life certificates. They can now submit it digitally using mobile phones or face authentication apps, reducing the need to stand in long queues.

Read More, NPS Rule Changes From October 1: 100% Equity Option, Flexible Withdrawals, and Multiple Schemes!

Conclusion

These 5 initiatives provide immediate financial relief and long-term security to central employees and pensioners. While the 8th Pay Commission notification is still awaited, these festive season measures demonstrate the government’s commitment to employee welfare and easing everyday challenges.

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