The government has launched a major scheme for government employees effective from April 1, 2025. The scheme will affect the salbu structure, pension benefits, and allowances, which will be in favor of millions of employees across various departments.
Key Highlights Of The New Scheme:
1. Increase In Basic Salary
This major scheme update is a revision in the basic salary of government employees. There will be an 8th Pay Commission coming up, after which there are speculations that fitment factors may increase, resulting in a salary hike of 40-50%. Employees working in lower pay grades will benefit only from this.
2. Pension Reforms For Retired Employees
The scheme has also provided certain increases in pension benefits at the time so that there would be a higher minimum pension for all retired government employees. The EPS-95 pensioners may also get a hike, and the reports suggest that for such pensioners, the minimum pension may go up to INR 7,500.
3. DA Hike
With soaring inflation, the government has approved another increase in Dearness Allowance (DA), to be reflected in the salaries of all employees effective April 1. The anticipation for the DA increase lies between 3% to 5%. This addition to income will form part of the allowance meant for government employees who currently must withstand a rise in the cost of living.
4. Updated House And Transport Allowances
Apart from the increased salary and pensions, House Rent Allowance (HRA) and Transport Allowance (TA) are also increased. Employees employed in metro cities and Tier-2 cities are expected to get a huge increase in HRA, while transport allowances would follow the fuel price hike.
5. Performance-Induced Incentives
The government, in addition, may well think of exporting annual allowances to reward stellar performance below the employee. Such employees will then have to find something extra in the nature of perks and increments added to their standard salary.
Who Is Likely To Benefit From This Scheme?
This new scheme is likely to benefit:
- Central and state government employees
- Retired pensioners under EPS-95 Employees of public sector undertakings (PSUs)
Conclusion
The new scheme will be available from April 1, 2025; such initiation will mark the onset of a substantial step to provide financial welfare to government employees and pensioners. With hikes in salary, improved pension benefits, and enhanced allowances across the spectrum, this decision is a big and much-needed financial boost for millions’ employees and their families.
Also Read: EPFO New Rules 2025: Major Relief For Government Employees, Check Benefits