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    CENTRAL GOVERNMENT EMPLOYEES

    India Inc salary restructuring: How new labour codes and income tax rules will impact take-home pay and retirement savings

    Salaried employees face uncertainty as new labor codes and tax rules loom. Companies are preparing for changes, but widespread implementation is delayed pending final government notifications. The shift towards a fixed-heavy salary structure, with higher basic pay, may reduce take-home salaries while boosting long-term retirement savings.

    Cabinet approves DA increase, extends PMGSY-III timeline

    Central government employees and pensioners will receive a 2% dearness allowance and dearness relief increase. This move aims to offset rising inflation. The Pradhan Mantri Gram Sadak Yojana-III has also seen its validity extended. An increased outlay of over ₹83,000 crore will support rural road development. These initiatives are set to boost the rural economy and improve connectivity.

    DA hike announcement: How salaries of Level 1-18 employees will rise after 2% dearness allowance hike

    DA hike for central government employees: A 2% hike in DA will take it from its current rate of 58% to 60%. With this hike, dearness relief (DR) for pensioners has also been increased to 60%. The announcement is for January 2026 and central government employees and pensioners will get arrears from the back date.

    Cabinet clears 2% DA hike as pay demands build ahead of 8th Pay Commission

    Central government employees will see a 2% Dearness Allowance increase. This modest salary boost comes as employee unions push for significant pay restructuring. The National Council–Joint Consultative Machinery has proposed a higher fitment factor. This could substantially increase the minimum basic pay, impacting the overall salary structure.

    DA hike: Cabinet approves 2% increase in dearness allowance for Central govt employees
    Cabinet meeting key decisions: Maritime insurance pool, DA hike for 1.18 crore government staff, new rail corridor among others

    The Union Cabinet has approved significant decisions impacting infrastructure and social security. A new Bharat Maritime Insurance Pool will boost domestic capacity. Central government employees and pensioners will see a Dearness Allowance and Relief hike. The Pradhan Mantri Gram Sadak Yojana-III receives an extension. A new rail corridor in Uttar Pradesh is also cleared, enhancing connectivity.

    The Economic Times
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