Home Blog

Defence Personnel Gratuity Limit Increased to ₹25 Lakh : DESW O.M

Defence Personnel Gratuity Limit Increased to ₹25 Lakh : DESW O.M

F.No.17(2)/2016-D(P/P)-Vol-1
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
D(Pension/Policy)

New Delhi, 110011
Dated 19.05.2025

To
The Chief of the Defence Staff
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject:-Enhancement of maximum limit of gratuity to Central Government Employees on reaching the Dearness Allowance rates to 50%- Implementation of recommendations of Seventh CPC-reg.

Sir,

I am directed to refer to this Ministry’s letter no. 17(02)/2016-D(Pen/Pol) dated 04.09.2017 regarding revision of provisions regulating Pension/ Gratuity/ Commutation of Pension/ Family Pension including Pensionary awards notified in terms of Casualty Pensionary Awards in respect of Commissioned Officers, Junior Commissioned Officers & Other Ranks, Retiring or dying in harness on or after 01.01.2016 in implementation of the Government’s decision on the recommendation of the Seventh Central Pay Commission.

2. In terms of Para 7.1 of the aforesaid Ministry’s letter the maximum limit of all kinds of Gratuity i.e. Retiring/ Retirement/ Service/ Invalid/ Special/ Terminal/ Death Gratuity shall be Rs.20 lakhs. This ceiling on gratuity shall be increased by 25% whenever the Dearness Allowance rises by 50% of the basic pay.

3. Department of Expenditure vide their OM No. 1/1/2024-E-II(B) dated 12.03.2024 has issued instructions regarding enhancement of Dearness Allowance from 46% to 50% of the Basic Pay with effect from 1st January, 2024.

4. Accordingly, as per the Government’s decisions in implementation of the recommendation of the Seventh CPC, the maximum limit of all kinds of gratuity is increased by 25% i.e from Rs 20.00 Lakh to Rs 25.00 Lakh, with effect from 01.01.2024.

5. This issues with the concurrence of the Finance Division of this Ministry vide their ID Note No. 10(03)/2017/Fin/Pen dated 01.05.2025.

6. Hindi version will follow.

Yours faithfully

(Gopal Singh)
Under Secretary to the Govt. of India

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

UPSC introduces new online application portal

UPSC introduces new online application portal

The Union Public Service Commission is introducing a new Online Application Portal for registration and filling up of application form online. The UPSC Online Application Portal has four parts, arranged in 4 separate cards at the home page, three of which namely, Account Creation, Universal Registration and Common Application Form contains information which are common to all examinations and can be filled anytime by the candidates. The fourth part i.e. Examination contains examination notices, Examination Application and applications status. Only examination specific information is to be filled up in this part by candidates during the time period allowed in the notification of an examination.

This arrangement will facilitate candidates to fill up first three parts anytime and keep ready for applying to any UPSC examination whenever notified with updates as may be required, thereby saving time and avoiding last minute rush.

All applicants are required to fill up the application and upload their documents in the newly introduced portal afresh by using the website https://upsconline.nic.in. The old One Time Registration (OTR) module will not be applicable henceforth.

Detailed instructions are available on the home page as well as with all profiles/modules to guide the candidates for filling up the application and upload the documents.

Applicants are strongly advised to use their Aadhar Card as ID document in the Universal Application for easy, effortless and seamless verification and authentication of ID and other details after which it serves as a permanent and common record for all examinations.

The New Application Portal is being launched with effect from 28.05.2025. Applications for CDS Exam-II, 2025 and NDA&NA-II, 2025, scheduled to be notified on 28.05.2025, will be accepted through the new online application portal.

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

Amendment of Rule 37 of CCS(Pension) Rules, 2021

Amendment of Rule 37 of CCS(Pension) Rules, 2021

Department of Pension and Pensioners’ Welfare in consultation with the Department of Expenditure, Ministry of Finance, Department of Personnel & Training, Department of Legal Affairs, Legislative Department and Comptroller & Auditor General has brought out an amendment in Rule 37 (29)(c) of CCS (Pension) Rules, 2021.

The amended Rule 37(29C) is as follows:

“… the dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall lead to forfeiture of the retirement benefits for the service rendered under the Government also and in the event of his dismissal or removal or retrenchment the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking.

For the purpose of this Rule, the relevant provisions of Rule 7 and 8 read with Rule 41 and Rule 44(5)(a) &(b) would be applicable analogous as is applicable to a Government servant under these Rules”

The amendment in Rule 37 (29)(c) of CCS (Pension) Rules, 2021 was carried out in the light of the Order dated 09.01.2023 of Hon’ble Supreme Court of India in SLP No.4817/2020 titled as Suraj Pratap Singh Vs CMD BSNL & Ors.

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

Guidelines for engagement of retired Central Government employees as consultants in the Department of Posts

Guidelines for engagement of retired Central Government employees as consultants in the Department of Posts

F. No. 31-2/2019-PE-II-DoP
Government of India
Ministry of Communications
Department of Posts
Establishment Division
(PE-II Section)

Dak Bhawan, Sansad Marg,
New Delhi-110001

Dated: 15th May, 2025

OFFICE MEMORANDUM

Subject: Guidelines for engagement of retired Central Government employees as consultants in the Department of Posts (Main Secretariat) – Reg.

The undersigned is directed to convey the approval of the Competent Authority for issuance of Revised Guidelines for Engagement of Retired Government Servants as consultant in the Department of Posts (Main Secretariat).

1.1 As per the OM No.3-25/2020-E-IIIA dated 9th December, 2020 issued by the Department of Expenditure, Ministry of Finance and with the objective to bring transparency and uniformity in the engagement of Consultants, the following Revised Guidelines are laid down in exercise of the powers conferred by Rule 179 of General Financial Rules, 2017. This OM will supersede all earlier guidelines/operating instructions on the subject matter and take effect from the date of issue.

2. PURPOSE AND SCOPE

2.1 Purpose: The purpose of these guidelines is to define the broad policies and procedures for selection and monitoring of consultants engaged by Department of Posts.

2.2 Scope: These instructions shall apply to Department of Posts (Main Secretariat).

2.3. In Government, Consultants engaged may be classified into the following three categories:

a) Institutional Consultants: Where an organization/agency/firm/ institution/ joint venture of persons are hired for doing a specific job/project.

b) Individual Consultants: Where individuals having academic or professional degree and/or working experience in the particular subject are hired from open market or through consultancy firms/agencies or a specific job/project.

c) Retired Central Govt. Employees as Consultants: Retired Govt. officers/officials are engaged as consultant for all purposes including General Secretariat/ Administrative work and works under various schemes.

d) Basic rules and procedures for hiring Consultants under the first two categories are prescribed in GFR,2017 and detailed guidelines are given in Manual of Policies and Procedures for Employment of Consultants issued by Ministry of Finance. Therefore, guidelines prescribed herein shall apply to engagement of consultants under third category only i.e “Retired Central Govt. Employees as Consultants”.

e) Manual of Procurement of Consultancy & other services, clause 2.1.6 which deals with Retired Government Servant states ” Rule 177 of GFR, 2017, says that the consulting services do not include direct engagement of retired Government servants. They should not be engaged against regular vacant posts as consultant under this rule. Retired Government servants can be engaged only for the specific task and for specific duration as consultant. They should be assigned clear output related goals”.

f) Such appointments shall not be made as a matter of practice and must be kept bare minimum. They may be made only in the justified exigencies of the official work, where public interest is served by appointment of the retired employee. While making such appointments, adequate functional necessity with clear grounds must be placed before the appointing authority”.

g) These instructions flow from and are subordinate to GFRs and in the event any variance between the two, the latter shall prevail.

2.4 Definitions:

i. “Department” means Department of Posts [Main Secretariat]
ii. “Competent Authority” means Secretary (Posts)

3. REMUNERATION, ALLOWANCES AND WORKING HOURS:

3.1 Remuneration:

A fixed monthly amount shall be admissible, arrived at by deducting the basic pension from the pay drawn at the time of retirement. The amount of remuneration so fixed shall remain unchanged for the term of the contract. There will be no annual increment/percentage increase during the contract period.

Example:

An employee retired in the Pay Level 13 and at the time of retirement the pay drawn was Rs. 1,55,900. Thus, the basic pension will be Rs. 77,950/-. If the employee is engaged on contract basis, including as consultant, the remuneration shall be fixed at Rs, 77,950/- (1,55,900-77,950).

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

Notional Increment for Pension: Relief for Employees Retiring before July 1st/January 1st

Notional Increment for Pension: Relief for Employees Retiring Before July 1st/January 1st

No. 19/116/2024-Pers.Pol. (Pay) (Pt)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi
Dated the 20th May, 2025.

OFFICE MEMORANDUM

Subject: Grant of notional increment on 1st July / 1st January to the employees who retired from Central Govt. service on 30th June / 31st December respectively for the purpose of calculating their pensionary benefits – regarding.

The undersigned is directed to invite reference to the instructions issued vide this Department’s OM of even number dated 14.10.2024 (copy enclosed) regarding grant of ‘notional increment’ on 1st July/1st January to the Central Government employees who retired/are retiring from service a day before it became due i.e. on 30th June/ 31st December and have rendered the requisite qualifying service as on the date of their superannuation with satisfactory work and good conduct for calculating the pension admissible to them. The said instructions were issued in compliance of the Interim Order dated 06.09.2024 passed by the Hon‘ble Supreme Court while hearing MA No.2400/2024 filed by M/o Railways along with several Intervention Applications tagged therewith. It was indicated therein that the action taken shall be subject to the final outcome of the petition (Dy. No. 36418/2024) filed by this Department seeking review of the Order dated 11.04.2023 of the Hon’ble Supreme Court in CA No. 2471/2023 on the subject matter.

2.Hon’ble Supreme Court, vide Order dated 18.12.2024, had dismissed the Review Petition (Dy. No. 36418/2024) filed by this Department with the observation that there is no error apparent on the face of the record, warranting reconsideration of the order impugned.

3.Hon‘ble Supreme Court has subsequently disposed of MA No. 2400/2024 filed by M/o Railways and other petitions vide Order dated 20.02.2025 while issuing the following final directions in the matter:

a.The judgment dated 11.04.2023 will be given effect to in case of third parties from the date of the judgment, that is, the pension by taking into account one increment will be payable on and after 01.05.2023. Enhanced pension for the period prior to 30.04.2023 (erroneously mentioned as 31.04.2023 in the Order) will not be paid;

b.For persons who have filed writ petitions and succeeded, the directions given in the said judgment will operate as res judicata, and accordingly, an enhanced pension by taking one increment would have to be paid;

c.The direction in (b) will not apply, where the judgment has not attained finality, and cases where an appeal has been preferred, or if filed, is entertained by the appellate court;

d.In case any retired employee filed an application for intervention/ impleadment/writ petition/ original application before the Central Administrative Tribunal/High Courts/Supreme Court, the enhanced pension by including one increment will be payable for the period of three years prior to the month in which the application for intervention/ impleadment/ writ petition/ original application was filed.

4.The Hon’ble Supreme Court has decided that the direction referred at Para 3(d) above will not apply to the retired government employee who filed a writ petition/original application or an application for intervention before the Central Administrative Tribunal/High Courts/Supreme Court after the judgment in “Union of India & Anr. Vs M. Siddaraj”, as in such cases directions referred in Para 3(a) will apply.

5.In addition, Hon‘ble Supreme Court has clarified that in case any excess payment has already been made, including arrears, such amount paid will not be recovered. Court has decided that pending applications including all intervention/impleadment applications shall stand disposed of in terms of this order.

6.The matter has been examined in consultation with D/o Expenditure and D/o Legal Affairs. It is advised that in pursuance of the above referred Order dated 20.02.2025 of the Hon’ble Supreme Court, action may be taken to allow the increment on 1st July / 1st January to the Central Government employees who retired/are retiring a day before it became due i.e. on 30th June / 31st December and have rendered the requisite qualifying service as on the date of their superannuation with satisfactory work and good conduct for calculating the pension admissible to them. As specifically mentioned in the orders of the Hon’ble Supreme Court, grant of the notional increment on 1st January / 1st July shall be reckoned only for the purpose of calculating the pension admissible and not for the purpose of calculation of other pensionary benefits.

7.This issues with the concurrence of D/o Expenditure vide their Dy. No. 08-09/2019-E.MA(Vol.1)(4265 134) dated 29.04.2025 and D/o Legal Affairs vide Computer Dy. No. E-144903 dated 17.03.2025.

8. Hindi Version will follow.

Encl: as above.

(Vikas)
Under Secretary to the Government of India
Tel. No. 20340489

To
All Ministries/Departments of Government of India.

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

DOPPW conducting 13th Pension Adalat for Family Pension on 4th June 2025

DOPPW conducting 13th Pension Adalat for Family Pension on 4th June 2025

Department of Pension & Pensioners’ Welfare will be conducting the 13th Pension Adalat with the theme of “Family Pension” on 04.06.2025 at Vigyan Bhawan, New Delhi

Committed to ensure faster resolution of grievances and enhance dignity and financial security for the Family Pensioners

Department of Pension and Pensioners’ Welfare will be conducting the 13th Pension Adalat with the theme of “Family Pension” on 04.06.2025 at Vigyan Bhawan, New Delhi417 grievances related to family pension matters pertaining to 17 Departments/Ministries are proposed to be taken up in the Adalat for redressal. Department wise list is mentioned below:

S. No.Concerned Ministry/DepartmentPendency
1.Central Board of Direct Taxes (Income Tax)3
2.Central Board of Indirect Taxes and Customs2
3.Department of Agriculture Research and Education1
4.Department of Commerce1
5.Department of Defence Finance8
6.Department of Defence Production1
7.Department of Defence Research and Development1
8.Department of Ex Servicemen Welfare62
9.Department of Financial Services
(Banking Division)
12
10.Department of Personnel and Training1
11.Employees Provident Fund Organisation3
12.Ministry of Civil Aviation1
13.Ministry of External Affairs1
14.Ministry of Home Affairs39
15.Ministry of Housing and Urban Affairs1
16.Ministry of Petroleum and Natural Gas1
17.Ministry of Railways ( Railway Board)7
18.o/o controller general of Accounts1
19.O/o the Comptroller & Auditor General
of India
1
20.PCDA(P) Prayagraj270
Total417

It is envisaged to resolve the chronic and long-pending grievances thereby facilitating payment of  the rightful due of the pensioners whether in the form of huge arrears due to delay in either starting of the family pension or due to procedural delays, the pension has not been processed and disbursed correctly. The preparation of the Adalat has commenced in full swing.

PIB

8th Pay Commission: Latest Updates, the 2.86 Fitment Factor Focus, and What to Expect!

8th Pay Commission: Latest Updates, the 2.86 Fitment Factor Focus, and What to Expect!

The 8th Pay Commission, which will revise the salary structure for central government employees and pensioners, is generating considerable anticipation. Here’s a breakdown of the latest updates and expected recommendations:  

Current Status and Timeline:

  • The government announced the formation of the 8th Pay Commission in January 2025.  
  • The 7th Pay Commission’s term ends on December 31, 2025, and the 8th Pay Commission is expected to be implemented from January 1, 2026.
  • The Terms of Reference (ToR), which will outline the commission’s scope and guidelines, are expected to be finalized soon.  
  • The process of appointing the Chairman and members of the 8th Pay Commission is currently underway. The government has issued circulars to fill 42 key positions, including the chairman and other members.  
  • Employee organizations, such as the National Council–Joint Consultative Machinery (NC-JCM), are actively preparing their demands, focusing on key issues like the fitment factor, minimum wage, pay scales, allowances, promotion policy, and pension benefits.

Expected Recommendations and Key Factors:

  • Fitment Factor: This is a crucial multiplier used to determine the revised basic pay. Employee organizations are demanding a high fitment factor, potentially around 2.86, to ensure a substantial increase in salaries and pensions. However, experts believe the actual fitment factor might be closer to 1.92.  
    • For example, with a fitment factor of 1.92, the minimum basic pay could rise to approximately ₹34,560.  
    • For example, with a fitment factor of 2.86, the minimum basic pay could rise to approximately ₹51,480.  
  • Salary Hike: While the fitment factor indicates the multiplication of the existing basic pay, the actual salary hike might be lower than it appears due to adjustments for inflation (Dearness Allowance).  
    • Historically, even with a higher fitment factor in the 7th Pay Commission (2.57), the actual salary increase was only around 14.2%.
  • 8th Pay Commission Pay Matrix: The 8th Pay Commission is expected to introduce a revised pay matrix with clearer salary slabs, aligning compensation with different roles.  
  • Minimum Wage: Employee unions are likely to push for a significant increase in the minimum wage for government employees.
  • Allowances: Allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA) are also expected to be revised. Upon implementation of the 8th Pay Commission, the DA is likely to be reset to zero and then gradually increased based on inflation.  
  • Pension Benefits: Pensioners are also hopeful for a substantial rise in their pensions, which will depend on the fitment factor and the Dearness Relief (DR) applicable at the time of implementation.
  • Calculations suggest that at a fitment factor of 2.0, a basic pension of ₹22,450 could be revised to ₹44,900.

8th Pay Commission Latest News

Impact and Considerations:

  • The implementation of the 8th Pay Commission will impact a large number of central government employees (around 4.7 million) and pensioners (around 6.5 million).
  • The financial implications of the revised pay scales and pensions will be significant for the government.
  • The recommendations will aim to balance the financial well-being of government employees with the fiscal capacity of the nation.

In conclusion, while the 8th Pay Commission has been announced and the initial processes are underway, central government employees and pensioners should be prepared for potential delays in the final implementation. The actual salary and pension increases will depend on the fitment factor and other recommendations made by the commission, which are yet to be finalized.

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

DA for Bank Employees from May 2025 to July 2025 as per 11th BPS – IBA ORDER

DA for Bank Employees from May 2025 to July 2025 as per 11th BPS – IBA ORDER

Indian Banks’ Association

HR & Industrial Relations

No.CIR/HR&IR/76/D/2025-26/2084
May 3, 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 May, June and July 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 March 2025 are as follows:-

January 2025 – 9413.77
February 2025 – 9387.47
March 2025 – 9400.62

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

The average CPI of the above is 9400.62 and accordingly the number of DA slabs are 762 (9400.62 – 6352=3048.62/4 = 762 slabs). The last average quarterly CPI was 782. Hence, there is a decrease in DA by 20p slabs for payment of DA for the months May, June and July 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 May, June and July 2025 shall be 53.34% of ‘ pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Yours faithfully,

Brajeshwar Sharma
Senior Advisor (HR&IR)

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

DA for Bank Employees from May 2025 to July 2025 as per 12th BPS – IBA ORDER

DA for Bank Employees from May 2025 to July 2025 as per 12th BPS – IBA ORDER

HR & Industrial Relations

No.CIR/HR&IR/76/D/2025-26/2083
May 3, 2025

All Members of the Association
(Designated Officers)

Dear Sir/ Madam,

Dearness Allowance for Workmen and Officer Employees in banks for the months of May, June and July 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 March 2025 are as follows:-

January 2025 143.2
February 2025142.8
March 2025143.0

The average CPI of the above is 143.00 and accordingly the number of points over 123.03 are 19.97 (143.0 – 123.03) The last average quarterly CPI was 144.23. Hence, there is a decrease of 1.23 points for May, June and July 2025.

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 May, June and July 2025 shall be 19.97% of ‘pay’ (0.01 % change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points)

Bank DA Calculator

Yours faithfully,

Brajeshwar Sharma
Senior Advisor (HR&IR)

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

AICPIN for March 2025: Expected DA from July 2025

AICPIN for March 2025: Expected DA from July 2025

GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

F.No. 5/1/2021-CPI

Shram Bureau Bhawan, Block No. 2,
Institutional Area, Sector 38 (West),
Chandigarh – 160036
Dated: 30.04.2025

Press Release

Consumer Price Index for Industrial Workers (2016=100) – March, 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 March, 2025 is being released in this press release.

2. The All-India CPI-IW for March, 2025 increased by 0.2 point and stood at 143.0 (one hundred forty three).

3. Year-on-year inflation for the month of March, 2025 stood at 2.95% as compared to 4.20% in March, 2024.

Also Check

DA Calculator from July 2025

DA Calculation Sheet

Follow us on WhatsApp, Telegram Channel, Twitter, Facebook and Android App for all latest updates

Just In