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DA/DR Arrears from COVID Period Not Feasible: Government Clarified again in Lok Sabha

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igeadmin
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DA/DR Arrears from COVID Period Not Feasible: Government Clarified again in Lok Sabha

Government of India
Ministry of Finance
Department of Expenditure
Lok Sabha

Un-Starred Question No 3638
To be answered on Monday, 11th August, 2025
Sravana 20, 1947 (Saka)

DA Arrears for Central Government Employees during COVID-19

3638. Shri Anand Bhadauria :

Will the Minister of FINANCE be pleased to state :

(a) whether the decision to freeze 18 months dearness allowance and dearness relief for Central Government employees and pensioners during COVID-19 were taken due to economic disruption and to ease pressure on Government finances;

(b) if so, whether fiscal condition of the Government is still under pressure and is on the verge of bankruptcy;

(c) if so, the details thereof and the reasons for failure of the Government to keep the robust fiscal condition of the country upto the mark which it inherited in legacy in 2014; and

(d) if not, the time by which the Government would release the arrears of 18 months DA/DR?

Answer
Minister of State in the Ministry of Finance
(Shri Pankaj Chaudhary)

(a) The decision to freeze three instalments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees / pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances.

(b)& (c) The fiscal deficit of the Government of India has narrowed from 9.2 per cent in the Financial Year (FY) 2020-21 to 4.4 per cent in the FY 2025-26 (Budget Estimates).

(d) The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible.

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No Proposal to Restore Old Pension Scheme for Central Government Employees Under NPS: Lok Sabha QA

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igeadmin
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No Proposal to Restore Old Pension Scheme for Central Government Employees Under NPS

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
STARRED QUESTION NO. *308

ANSWERED ON MONDAY, 11 AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)

RESTORATION OF OLD PENSION SCHEME

*308. SHRI SUDAMA PRASAD
SHRI UTKARSH VERMA MADHUR

Will the Minister of FINANCE be pleased to state:

(a) whether the Government proposes to restore the Old Pension Scheme (OPS), if so, the details thereof and if not, the reasons therefor along with the reasons for introducing UPS;

(b) whether the Government is aware about the non-feasibility of the New Pension Scheme and if so, the details thereof;

(c) the reasons for excluding unemployed son, unmarried/widowed/divorced daughter and dependent parents from the definition of family in UPS; and

(d) the reasons for the reduced pension in UPS as compared to OPS and the declaration of UPS only through a Press release?

ANSWER
THE MINISTER OF FINANCE
(SMT. NIRMALA SITHARAMAN)

(a) to (d) A Statement is laid on the Table of the House.

STATEMENT OF LOK SABHA STARRED QUESTION NO. *308 REGARDING “RESTORATION OF OLD PENSION SCHEME” RAISED BY SHRI SUDAMA PRASAD AND SHRI UTKARSH VERMA MADHUR, ANSWERED ON 11.08.2025.

(a) to (c) There is no proposal under consideration of the Government of India for restoration of Old Pension Scheme (OPS) in respect of Central Government employees covered under National Pension System (NPS). The Government had moved away from OPS due to its unsustainable fiscal liability on the Government exchequer. NPS is a defined contribution-based scheme which was introduced for Central Government employees (except armed forces) joining service on or after 01.01.2004. With a view of improving upon the pensionary benefits for such employees, a Committee was constituted under the chairpersonship of the then Finance Secretary to suggest measures to modify the NPS. Based on the deliberations of the Committee with stakeholders, Unified Pension Scheme (UPS) has been introduced as an option under NPS with the objective of providing defined benefits after retirement to the Central Government employees covered under the NPS.

The features of UPS including the definition of family have been designed in such a way so as to ensure payment of assured payouts while also maintaining fiscal sustainability of the fund. Further, the Government employees who opt for UPS under NPS shall also be eligible for option for availing benefits under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023, in the event of death of the Government servant during service or his discharge on the ground of invalidation or disablement.

(d) UPS has been introduced through a notification by the Government on 24.01.2025, as an option under NPS. Under UPS, assured payout is admissible on retirement @ 50% of twelve monthly average basic pay, immediately prior to retirement after a minimum 25 years of qualifying service. In case of lesser qualifying service period, proportionate payout would be admissible.

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CGEGIS Tables of Benefits from July 2025 to September 2025: FINMIN O.M

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igeadmin
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CGEGIS Tables of Benefits from July 2025 to September 2025: FINMIN O.M

No. 7(1)/EV/2023
Government of India
Ministry of Finance
Department of Expenditure
E-V Branch

New Delhi, the 04th August, 2025

OFFICE MEMORANDUM

Sub: Central Government Employees Group Insurance Scheme-1980 – Tables of Benefits for the savings fund for the period from 01.07.2025 to 30.09.2025.

The Tables of Benefits for Savings Fund to the beneficiaries under the Central Government Employees Group Insurance Scheme-1980, which are being issued on a quarterly basis from 01.01.2017 onwards, as brought out in this Ministry’s OM of even number dated 17.03.2017, for the quarter from 01.07.2025 to 30.09.2025, as worked out by IRDA based on the interest rate of 7.1% per annum (compounded quarterly) as notified by the Department of Economic Affairs as per their Resolution No. 5(3)-B(PD)/2023 dated 02.07.2025, are enclosed.

2. The Tables enclosed are of two categories as per the existing practice. As hitherto, the first Table of Benefits for the savings fund of the scheme is based on the subscription of Rs.10 p.m. from 1.1.1982 to 31.12.1989 and Rs.15 p.m. w.e.f. 1.1.1990 onwards. The second Table of Benefits for savings fund is based on a subscription of Rs.10 p.m. for those employees who had opted out of the revised rate of subscription w.e.f. 1.1.1990.

3. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these Orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

4. Hindi version of the order is attached.

(Praveen Ranjan)
Director

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Dearness Relief to Bank Pensioners from Aug 2025 to January 2026 : IBA Order

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igeadmin
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Dearness Relief to Bank Pensioners from Aug 2025 to January 2026 : IBA Order

Indian Banks’ Association

HR & INDUSTRIAL RELATIONS

No.CIR/HR&IR/D/G2/2025-26/2387
August 01, 2025

Designated Officers of all Member Banks

which are parties to the Bipartite Settlement on Pension

Dear Sir / Madam,

Dearness Relief payable to Pensioners for the period August 2025 to January 2026

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers for the quarter ended June 2025 are as follows:-

Month & Year1960 = 100 series2016 = 100 series
April 20259433.49143.5
May 20259466.36144.0
June 20259532.10145.0
CPI Average9480.00144.16

In terms of Regulation 37 of Bank Employees’ Pension Regulations, 1995 Dearness Relief is payable to pensioners at rates specified in Appendix II to the Regulations.

Also Read: Bank Dearness Relief from Aug 2025 to Jan 2026 for pre 1986 retirees : IBA Order

Dearness Relief to Bank Pensioners from Aug 2025 to Jan 2026 where DR Neutralisation is not implemented

Further, we draw your attention to our circular HR&IR/MBR/G2/0533 dated 16.10.2023, wherein we have communicated about DR neutralization for pre 01.11.2002 retirees and family pensioners. The amount of ex-gratia to be paid, to a group of pensioners, was also mentioned therein.

Pending amendments to Pension Regulations, Banks may pay on ad hoc basis, the Dearness Relief payable to pensioners for the period August 2025 to January 2026 as per Annexure.

Yours faithfully,

Brajeshwar Sharma
Senior Advisor (HR&IR)

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Dearness Relief to Bank Pensioners from Aug 2025 to Jan 2026 where DR Neutralisation is not implemented

By
igeadmin
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Dearness Relief to Bank Pensioners from Aug 2025 to Jan 2026 where DR Neutralisation is not implemented

Indian Banks’ Association

HR & INDUSTRIAL RELATIONS
No.CIR/HR&IR/D/G2/2025-26/2388
August 01, 2025

Designated Officers of all Member Banks
which are parties to the Bipartite Settlement on Pension

Dear Sir/ Madam,

Dearness Relief payable to Pensioners for the period August 2025 to January 2026

Please refer to our Circular No.CIR/HR&IR/D/G2/2025-26/2387 dated August 01, 2025, wherein we had provided the rates at which Dearness Relief payable to Pensioners / family pensioners, for the period of August 2025 to January 2026, after implementation of DR neutralization for pre-November 2002 retirees / family pensioners.

Also Read: DA for Bank Employees from August 2025 to October 2025 as per 12th BPS – IBA ORDER

2. To facilitate those who are yet to implement our letter HR&IR/MBR/G2/0533 dated 16.10.2023, in addition to the contents of our above mentioned circular dated 01.08.2025, they may pay on ad hoc basis (Pending amendments to Pension Regulations), the Dearness Relief payable to pensioners for the period August 2025 to January 2026 as per Annexure.

Yours faithfully,

Brajeshwar Sharma
Senior Advisor (HR&IR)

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Bank Dearness Relief from Aug 2025 to Jan 2026 for pre 1986 retirees : IBA Order

By
igeadmin
-

Bank Dearness Relief from Aug 2025 to Jan 2026 for pre 1986 retirees : IBA Order

Indian Banks’ Association

HR & INDUSTRIAL RELATIONS

No.CIR/HREIR/D/G2/2025-26/2389
August 01, 2025

Designated Officers of all Nationalised Banks and State Bank of India

Dear Sir/Madam,

Dearness Relief payable for the period August 2025 to January 2026 (a) to surviving pre 1.1.1986 retirees of banks (b) surviving spouses of pre 1.1.86 Retirees who are in receipt of Ex-gratia

As per the directive contained in the Government of India, Ministry of Finance Department of Economic Affairs (Banking Division) letter F.No.11/2/2012-IR dated 17.12.2013, the Dearness Relief payable to surviving pre 1.1.1986 retirees of banks for the period August 2025 to January 2026 on Ex-gratia will be as under:

Applicable CPI AverageAmount of Ex-gratia per monthRate of Dearness ReliefAmount of Dearness Relief per monthTotal Ex-gratia amount including Dearness Relief per month
₹%₹₹
9480.00Pre 1.1.86 Retirees3501487.405205.905555.90
Surviving spouses of pre 1.1.86 retirees1751487.402602.952777.95

2. However, you may be guided by IBA circular HREIR/MBR/743/2022-23/11722 dated February 7, 2023, wherein we have sent an advisory to Banks, to consider additional ex-gratia payment over and above the amount being paid as per DFS guidelines so as to ensure that the surviving pre 1986 retired employee / surviving spouse of pre 1986 retired employee get a minimum of Rs.10000/- per month as Ex-gratia.

Also Read: DA for Bank Employees from August 2025 to October 2025 as per 11th BPS – IBA ORDER

DA for Bank Employees from August 2025 to October 2025 as per 12th BPS – IBA ORDER

Yours faithfully,

Brajeshwar Sharma
Senior Advisor (HR&IR)

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DA for Bank Employees from August 2025 to October 2025 as per 12th BPS – IBA ORDER

By
igeadmin
-

DA for Bank Employees from August 2025 to October 2025 as per 12th BPS – IBA ORDER

Indian Banks’ Association

HR & Industrial Relations
No.CIR/HR&IR/76/D/2025-26/2385

August 1, 2025

All Members of the Association
(Designated Officers)

Dear Sir/ Madam,

Dearness Allowance for Workmen and Officer Employees in banks for the months of August, September, and October 2025 under XII BPS/ 9TH Joint Note dated 08.03.2024

The confirmed All India Average Consumer Price Index for Industrial Workers (Base 2016 =100) for the quarter ended June 2025 are as follows:

April 2025143.5
May 2025144.0
June 2025145.0

The average CPI of the above is 144.16 and accordingly the number of points over 123.03 are 21.13 (144.16 – 123.03). The last average quarterly CPI was 143.0. Hence, there is an increase of 1.16 points for August, September, and October 2025.

Also read: DA for Bank Employees from August 2025 to October 2025 as per 11th BPS – IBA ORDER

In terms of clause 13 of the 12th Bipartite Settlement dated 08.03.2024 and clause 2 (i) of the Joint Note dated 08.03.2024, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of August, September, and October 2025 shall be 21.13% of ‘pay’ (0.01 % change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points).


Expected DA Calculator for Bank Employees

Yours faithfully,

Brajeshwar Sharma
Senior Advisor (HR&IR)

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DA for Bank Employees from August 2025 to October 2025 as per 11th BPS – IBA ORDER

By
igeadmin
-

DA for Bank Employees from August 2025 to October 2025 as per 11th BPS – IBA ORDER

Indian Banks’ Association

HR & Industrial Relations

No.CIR/HR&IR/76/D/2025-26/2386
August 1, 2025

All Members of the Association
(Who are yet to implement 12th BPS/9th Joint note signed on 08.03.2024 – Designated Officers)

Dear Sir/ Madam,

Dearness Allowance for Workmen and Officer Employees in banks for the months of August, September, and October 2025 under XI BPS/ 8TH Joint Note dated 11.11.2020

The confirmed All India Average Consumer Price Index for Industrial Workers (Base 1960= 100) for the quarter ended June 2025 are as follows:-

April 20259433.49
May 20259466.36
June 20259532.10

The average CPI of the above is 9480.00 and accordingly the number of DA slabs are 782 (9480 – 6352 = 3128/4 = 782 slabs). The last average quarterly CPI was 782. Hence, there is no change in DA for the months of August, September, and October 2025.

In terms of clause 7 of the 11th Bipartite Settlement dated 11.11.2020 and clause 3 of the Joint Note dated 11.11.2020, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of August, September, and October 2025 shall be 54.74% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Yours faithfully,

Brajeshwar Sharma
Senior Advisor (HR&IR)

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Central Government Employees likely to get 3% DA hike from July 2025

By
igeadmin
-

Central Government Employees likely to get 3% DA hike from July 2025

The wait is over for over a crore of Central Government employees and pensioners as the final piece of the puzzle for the Dearness Allowance (DA) and Dearness Relief (DR) hike from July 2025 has been revealed. The Labour Bureau’s press release on the All-India Consumer Price Index for Industrial Workers (CPI-IW) for June 2025 has confirmed a significant increase, putting an end to all speculation.1

According to the official data, the All-India CPI-IW for June 2025 saw a rise of 1.0 point, standing at 145.0. This increase, following the upward trend observed in the previous months, has solidified the projected DA/DR hike. The latest CPI-IW data indicates a 3% increase in DA/DR, bringing the total rate to 58.17% under the 7th Central Pay Commission (CPC).

However, as per the standard calculation method, the DA/DR rate is determined by taking the absolute value, leaving out the decimal. This means the DA/DR for Central Government employees and pensioners will be 58% effective from July 2025.

This announcement brings immense relief and a much-needed financial boost to millions of beneficiaries who have been grappling with the rising cost of living. The DA/DR is a crucial component of their pay, designed to offset the effects of inflation.

While the new rate is effective from July 1, 2025, the official approval is a procedural step that is expected to be taken up by the Union Cabinet in September 2025. Following the cabinet’s approval, the Ministry of Finance will issue a formal notification, and the revised salaries and pensions, along with the arrears, will be disbursed to the employees and pensioners.

This will be the last DA/DR hike under the 7th CPC before its conclusion at the end of the year. With the 8th Pay Commission on the horizon, this increase provides a strong financial footing for employees and pensioners as they await further revisions to their salary and pension structure. The confirmed 58% DA/DR is a welcome development and a positive step toward ensuring the financial well-being of the workforce and retirees.

Also Read:

DA Calculator

DA Calculation Sheet

AICPIN for June 2025: Expected DA from July 2025

By
igeadmin
-

AICPIN for June 2025: Expected DA from July 2025

GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

Shram Bureau Bhawan, Block No. 2,
Institutional Area, Sector 38 (West),
Chandigarh – 160036

F.No. 5/1/2021-CPI

Dated: 31.07.2025

Press Release

Consumer Price Index for Industrial Workers (2016=100) – June, 2025

1. Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. The index for the month of June, 2025 is being released in this press release.

2. The All-India CPI-IW for June, 2025 increased by 1.0 point and stood at 145.0 (one hundred forty-five).

Also Read:

DA Calculator

DA Calculation Sheet

3. Year-on-year inflation for the month of June, 2025 stood at 2.55% as compared to 3.67% in June, 2024. Y-o-Y Inflation based on CPI-IW (General)

PIB

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