Narendra Modi–led Union Cabinet approved a 2% Dearness Allowance hike for central government employees and pensioners, benefiting over 1 crore people. The decision comes amid broader demands for major pay revision under the proposed 8th Pay Commission
The Department of Financial Services (DFS), in collaboration with Public Sector Banks (PSBs), will unveil a Composite Salary Account Package for Central Government employees on 14 January 2026. The initiative aims to provide unified banking and insurance benefits across cadres.
The Union Cabinet on Tuesday approved the Terms of Reference for the 8th Pay Commission, chaired by retired Supreme Court judge Ranjana Prakash Desai. The panel’s recommendations are likely to benefit over 1.19 crore central employees and pensioners from January 2026
The Union Cabinet on Wednesday approved a 3 per cent hike in Dearness Allowance and Dearness Relief for 49.19 lakh central government employees and 68.72 lakh pensioners. Effective from July 1, 2025, the hike will cost Rs 10,083.96 crore annually
The Finance Ministry has urged central government employees to opt for the Unified Pension Scheme (UPS) before September 30, 2025. The Ministry highlighted benefits, tax incentives, and a one-time UPS-to-NPS switch facility for timely processing of requests
Finance Minister Nirmala Sitharaman told Parliament there is no proposal to restore the Old Pension Scheme for central government staff under NPS. Instead, the Unified Pension Scheme offers defined retirement benefits while ensuring fiscal sustainability. Household net financial position has improved
