New Perks Scheme – In a major announcement set to benefit lakhs of central government employees, the Ministry of Finance has rolled out a new perks scheme starting from 1 August 2025. This includes a one-time ₹18,000 festival bonus and a hike in the monthly allowances, including Dearness Allowance (DA) and Transport Allowance (TA). The move is seen as a pre-festive season relief measure amidst rising inflation and high living costs across India. The scheme will directly impact nearly 48 lakh central employees and pensioners, bringing in enhanced financial stability and morale boost for government workers just ahead of the Independence Day celebrations.
Highlights of the New Central Govt Perks Scheme
From August 1, 2025, central employees will start receiving upgraded monetary benefits under the new scheme. Below are the major features of this scheme:
- ₹18,000 one-time festival bonus for all eligible employees
- 4% hike in Dearness Allowance (DA)
- Increase in House Rent Allowance (HRA) slabs
- Monthly Transport Allowance revised based on city classification
- Additional pension benefits for senior retirees
- New child education allowance policy introduced
- Increased limit on reimbursement claims under LTC
- Scheme to benefit both active employees and pensioners
Detailed Benefit Chart for Central Govt Employees
The following table outlines the revised monthly allowances and one-time benefits under the new perks scheme:
| Benefit Type | Previous Amount (₹) | New Amount (₹) | Effective From | Remarks |
|---|---|---|---|---|
| Festival Bonus | Not Applicable | ₹18,000 | 1 August 2025 | One-time payment |
| Dearness Allowance (DA) | 46% of basic pay | 50% of basic | 1 August 2025 | 4% hike |
| House Rent Allowance (HRA) | ₹3,600 (Tier-1 City) | ₹4,200 | 1 August 2025 | Based on city classification |
| Transport Allowance | ₹1,800 | ₹2,250 | 1 August 2025 | For metro cities |
| Pension Relief Bonus | ₹10,000 | ₹12,500 | 1 August 2025 | For senior citizens |
| Child Education Allowance | ₹2,250 annually | ₹3,000 | 1 August 2025 | Per child |
| LTC Reimbursement Limit | ₹50,000 | ₹75,000 | 1 August 2025 | Includes family travel |
| Special Allowance for Women | ₹1,000 | ₹1,500 | 1 August 2025 | Per month |
Who Is Eligible for the Bonus and Allowance Hike?
The government has laid out clear eligibility criteria for central government employees and pensioners to benefit from this scheme. These include:
- Must be a full-time employee under the Central Government as of 1 August 2025
- Pensioners must be drawing central government pensions
- Contractual or temporary staff are excluded from bonus eligibility
- Employees with minimum 6 months of service are eligible for full bonus
- Applicable across all departments, including Railways, Postal, Defence, and PSU units
Key Conditions to Avail Benefits
- Employees need not submit any form; bonuses and revised allowances will be automatically credited to salary accounts
- Salary slips for August 2025 will reflect the updated components
- Any discrepancies can be reported to respective department HR cells by 25 August 2025
DA Hike Implications: What Does a 4% Increase Mean?
A 4% increase in DA may sound small, but when added to the basic salary, it leads to a significant jump in monthly income, especially for employees in higher pay bands.
| Basic Pay (₹) | Old DA @ 46% (₹) | New DA @ 50% (₹) | Monthly Increase (₹) | Yearly Increase (₹) |
|---|---|---|---|---|
| ₹25,000 | ₹11,500 | ₹12,500 | ₹1,000 | ₹12,000 |
| ₹40,000 | ₹18,400 | ₹20,000 | ₹1,600 | ₹19,200 |
| ₹50,000 | ₹23,000 | ₹25,000 | ₹2,000 | ₹24,000 |
| ₹65,000 | ₹29,900 | ₹32,500 | ₹2,600 | ₹31,200 |
| ₹80,000 | ₹36,800 | ₹40,000 | ₹3,200 | ₹38,400 |
Additional Perks Introduced for Central Pensioners
The scheme has extended its reach to benefit central pensioners too, especially those in the senior citizen category:
- Additional ₹12,500 pension relief credited with August pension
- Medical reimbursement slab raised to ₹40,000 per year
- Faster digital grievance redressal system for retired employees
- Simplified document submission for aged pensioners
- Revised commutation benefits calculation method to enhance payouts
City-Based Allowance Revision for TA and HRA
The government has also adjusted transport and housing allowances based on cities of posting:
| City Category | Old HRA (₹) | New HRA (₹) | Old TA (₹) | New TA (₹) |
|---|---|---|---|---|
| Tier-1 (Metro) | ₹3,600 | ₹4,200 | ₹1,800 | ₹2,250 |
| Tier-2 (Urban) | ₹2,400 | ₹3,000 | ₹1,200 | ₹1,600 |
| Tier-3 (Rural) | ₹1,800 | ₹2,250 | ₹1,000 | ₹1,300 |
Timeline, Payment Process, and Implementation Plan
The Finance Ministry has issued an official circular to all departments for immediate implementation of the scheme:
- Official notification issued: 24 June 2025
- Implementation date: 1 August 2025
- First credit date: Salary of August (to be paid by 31 August 2025)
- All allowances to be reflected in payslips
- Pensioner bonuses to reflect in monthly pension disbursed via banks
The new perks scheme announced by the Central Government is a welcome development for employees and pensioners alike. With the ₹18,000 bonus, increased allowances, and streamlined benefit distribution, the scheme aims to provide financial relief ahead of the festive season while also appreciating the services of government employees. Employees are advised to verify their updated salary slips in August and report any delays or mismatches to their departmental HR or accounts section promptly.
Frequently Asked Questions (FAQs)
Q1. Who is eligible for the ₹18,000 bonus under this scheme?
All full-time central government employees with at least 6 months of service as of 1 August 2025 are eligible.
Q2. Will pensioners also get the bonus?
Yes, central government pensioners will receive a ₹12,500 pension bonus as part of the new perks scheme.
Q3. Do I need to apply to receive these benefits?
No application is needed. The bonus and revised allowances will be automatically added to your August 2025 salary/pension.
Q4. What is the effective date for the updated allowances?
All revised allowances and bonuses will come into effect from 1 August 2025.
Q5. How can I report an error in my revised salary or bonus?
Employees can contact their HR or Accounts department. Pensioners should reach out to the pension disbursing bank or central pension portal.