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
