Whalesbook
State Employees to Receive DA Arrears
The Maharashtra government has approved a disbursement of approximately ₹800 crore to settle dearness allowance (DA) arrears for its state employees. These payments cover the periods of November and December 2025, and January 2026. The arrears are scheduled to be paid out with the May 2026 salary.
Pension Relief and NPS Changes
In addition to the DA arrears, retired All India Services officers will receive a 2% increase in dearness relief (DR), effective January 1, 2026. This raises their dearness relief to 60%. The state has also introduced reforms to the National Pension System (NPS). Under revised rules, current employees can opt for a new NPS scheme by December 31, 2026. This central government-aligned framework requires employees to contribute 60% of their retirement corpus to the state, with the remaining 40% going into annuities that will adjust state pension payments. Employees can also make early withdrawals from the NPS corpus under certain conditions, provided they repay the amount with 10% interest.