The Maharashtra government will pay around Rs 800 crore in dearness allowance (DA) arrears to state government employees under the fifth, sixth and seventh Central Pay Commissions, according to reports and resolutions issued by the state finance department.
Dearness allowance refers to additional financial compensation provided to public sector employees and pensioners to offset inflation and rising living costs.
ALSO READ | DA Hike Alert: Maharashtra Hikes Dearness Allowance By 2% For State Employees Under 5th, 6th And 7th CPC
The allowance is calculated as a percentage of an employee's basic salary or pension and is revised periodically based on the Consumer Price Index (CPI).
The arrears for November and December 2025, along with January 2026, will be paid with salaries for May 2026.
The decision applies to employees across departments and categories receiving salaries under different pay commission structures.
The Maharashtra government has also approved a 2% increase in dearness relief for retired All India Services (IAS) officers. Pensioners and family pensioners will now receive revised dearness relief of 60%, effective Jan. 1, 2026.
The development comes after the state government revised pension norms for employees covered under the National Pension System (NPS).
Under the drawdown option, NPS subscribers will be allowed to access periodic payments from their lump-sum corpus on a monthly, quarterly or annual basis while continuing to receive mandatory annuity payouts.
ALSO READ | NPS Launches Retirement Income Schemes: From Payout To Benefits, All You Need To Know
The payout-focused life-cycle option under the NPS has been named the Retirement Income Scheme (RIS). The scheme allows subscribers to withdraw a portion of their pension savings in phases through drawdown options without affecting statutory annuitisation norms.
The scheme can continue until the age of 85, or a lower age chosen at the time of retirement.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.