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.
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 & Year
1960 = 100 series
2016 = 100 series
April 2025
9433.49
143.5
May 2025
9466.36
144.0
June 2025
9532.10
145.0
CPI Average
9480.00
144.16
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.
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.
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.
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.
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 Average
Amount of Ex-gratia per month
Rate of Dearness Relief
Amount of Dearness Relief per month
Total Ex-gratia amount including Dearness Relief per month
₹
%
₹
₹
9480.00
Pre 1.1.86 Retirees
350
1487.40
5205.90
5555.90
Surviving spouses of pre 1.1.86 retirees
175
1487.40
2602.95
2777.95
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.
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 2025
143.5
May 2025
144.0
June 2025
145.0
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.
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).
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 2025
9433.49
May 2025
9466.36
June 2025
9532.10
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.
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.
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).
8th Central Pay Commission: Chairperson and Members Appointments Pending Government Notification [ Rajya Sabha QA]
GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE
RAJYA SABHA UNSTARRED QUESTION No. 1052
TO BE ANSWERED ON TUESDAY, JULY 29, 2025/ SRAVANA 7, 1947 (SAKA)
“EIGHTH CENTRAL PAY COMMISSION”
1052: SMT. SAGARIKA GHOSE:
Will the Minister of Finance be pleased to state:
(a) the date of issuance of official notification approving the constitution of the Eighth Central Pay Commission (CPC);
(b) whether the Chairperson and Members of the Eighth CPC been finalized, if so, the details of names, designations, and official appointment orders, if not, specify the tentative timeline for their selection; and
(c) the Terms of Reference (ToR) assigned to the Eighth CPC and whether the Ministry has set a specific timeline for the commission to submit its recommendations, if so, the details thereof and if not, the reasons therefor?
ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)
(a): It has been decided by the Government to constitute the 8th Central Pay Commission (CPC). Inputs have been sought from the major stakeholders. Official notification would be issued in due course.
(b): The Chairperson and Members of the 8th CPC would be appointed once the 8th CPC is notified by the Government.
(c): Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States. The Commission will make its recommendations within the timeline that will be provided in the Terms of Reference.
Terms of Reference for 8th CPC: Key Proposals from Secretary Staff Side NC(JCM) to DoPT: Rajya Sabha QA
GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE
RAJYA SABHA UNSTARRED QUESTIONS No. 223
TO BE ANSWERED ON TUESDAY, JULY 22, 2025/ 31 ASHADHA, 1947 (SAKA)
“EIGHTH CENTRAL PAY COMMISSION”
223: Shri Bhubaneswar Kalita:
Will the Minister of Finance be pleased to state:
(a) whether Government has received any suggestion from the National Council of Joint Consultative Machinery (NC-JCM) for framing the terms of reference for Eighth Central Pay Commission, if so, the main suggestions of the council;
(b) whether these suggestions are being considered by Government;
(c) whether Government is planning to involve all stakeholders in the Commission; and
(d) if so, the details thereof, if not, the reasons therefor?
ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)
(a) & (b): A copy of the suggestions received from the National Council of Joint Consultative Machinery (NC-JCM), as part of the stakeholder consultation, is enclosed as Annexure-I.
(c) & (d): Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States.
Statement referred to in reply of part (a) & (b) of Rajya Sabha Unstarred Question No. 223 for answer on 22-07-2025
Terms of Reference for 8th CPC forwarded by Secretary Staff Side NC(JCM) through Department of Personnel & Training
A. To examine the existing structure of pay, Allowances and other benefits facilities, retirement benefits like pension / gratuity and other terminals benefits etc. to the following categories of employees:-
1. Central Government employees-industrial and non-industrial. 2.Personnel belonging to All India services. 3.Personnel belonging to the Defence Forces and Para Military Forces. 4.Personnel called as Grameen Dak Sewaks belonging to the Postal Department. 5.Personnel of Union Territories. 6 Officers and employees of the Indian Audit and Accounts Department. 7.Officers and employees of the Supreme Court. 8.Members of Regulatory bodies (excluding RBI) set up under Act of Parliament 9.Employees of Central Government Autonomous Bodies and Institutions.
B. To work out the comprehensive revised pay packet for the categories of Central Government Employees mentioned in (A)above as on 1.1.2026.
C. The Commission will determine the Pay structure, benefits, facilities retirement benefits, welfare matters etc taking in to account to provide the minimum wage as a “Decent and dignified Living Wage” with reference to the recommendation of the 15th Indian Labour Conference (1957) with modifications in the Dr. Aykroyd formula considering the developments and life requirements which has undergone changes in last 65 years and also the various Judgments of Hon’ble Supreme Court Judgments on fixing the minimum wages as on 1.1.2026. The Commission also consider to increase the consumption units from 03 family units to 3.6 family units as recommended by an expert committee constituted by Ministry of Labour and Employment to determine the National Minimum Wage Policy in the year 2019.
D. The 8th CPC should consider the merger of non-viable Pay scales such as Level – 1 with Level – 2 and Level – 3 with Level – 4 and Level – 5 with Level – 6.
E. To consider the existing anomalies in the MACP scheme and to recommend minimum 3 promotion in service with very defined Hierarchical Structure and MACP in the Promotional Hierarchy.
F. To determine the Interim Relief to be sanctioned immediately to the Central Government employees and pensioners mentioned in (A) above.
G. To determine the percentage of Dearness Allowance / Dearness Relief immediately to be merged with Pay & Pension.
H. To settle the various 7th CPC Anomalies which the Staff Side raised in the Anomaly Committee meetings and JCM meetings.
I. To Workout the improvements needed to the existing retirement benefits like pension, Death cum retirement Gratuity, Family pension, restoration of commuted portion of pension after 12 years, implementation of Parliamentary Standing Committee recommendations for enhancement of pension after every 5 years, parity amongst past, future pensioners.
J. To review and to restore the defined and non contributory Pension Scheme Under CCS (Pension Rules) 1972 (Now 2021) to the Central Government employees recruited on or after 1/1/2004.
K. To recommend the parliamentary Standing Committee recommendation on CGIIS related matter FMA and to recommend methods for providing cashless / hassle-free Medical facilities to the employees and Pensioners including Postal Pensioners.
L. To review and recommend Children Education Allowance and Hostel Subsidy upto the Post Graduation Levet.
M. To review and recommend introduction of such advances which are required in the current circumstance and also to restore the advance which are abolished.
N. To consider Payment of Risk and Hardship Allowance to all the categories of Railway employees in the Indian Railways, considering the Risk and Hardship involved in the nature of duties of the Railway employees who work round the clock on all 365 days.
O. To consider the highly, perennial, risky and hazardous working conditions under which the Defence Civilian Employees involved in Manufacturing Arms, Ammunitions, Chemicals, Explosives & Acids etc., and also in its storage and to recommend a Special Risk Allowance, Insurance Coverage, Compensation etc..
