Department of Personnel & Training (DoPT)
Employee Benefits Handbook 2026
Part 1: Salary, Health & Leave Rules
Central Govt Employee Benefits 2026: The Complete Salary, Pension & Leave Guide (Part 1)
- Pay Structure: 7th CPC (Moving to 8th CPC)
- DA Rate: 60% (Jan 2026 Projection)
- Pension: Unified Pension Scheme (UPS)
- Medical: CGHS / FMA (Revised)
Overview: The 2026 Financial Landscape
Being a Central Government employee offers more than just a monthly salary. It is a comprehensive security package. With the Dearness Allowance (DA) touching 60% in 2026, the gross salary and associated benefits like HRA and Gratuity have seen automatic upgrades. This guide (Part 1) covers the fundamental “Core Benefits” that every employee—from MTS to Secretary—is entitled to.
1. The Salary Suite (Pay & Allowances)
Your monthly credit is a sum of several dynamic components.
✔ Fixed Components
- Basic Pay: Defined by Levels 1 to 18 in the Pay Matrix. Minimum ₹18,000 (Level 1).
- Annual Increment: A guaranteed 3% hike every July 1st or January 1st.
✔ Variable Components (2026)
- Dearness Allowance (DA): Paid to offset inflation. Currently at 60% of Basic Pay.
- House Rent Allowance (HRA): Revised to 30% (X), 20% (Y), 10% (Z) cities as DA crossed 50%.
- Transport Allowance (TPTA): Fixed amount + DA. Rates vary by Level (e.g., ₹1350/₹3600/₹7200).
2. Social Security & Pension (UPS Update)
The retirement landscape has shifted with the introduction of the Unified Pension Scheme (UPS), ensuring a defined benefit.
- Unified Pension Scheme (UPS): Guarantees 50% of the average basic pay of the last 12 months as pension for those with 25 years of service.
- Gratuity (DCRG): A lump sum paid at retirement/death. The ceiling has been hiked to ₹25 Lakhs (as DA crossed 50%).
- Family Pension: Financial security for the spouse/dependents (30% to 50% of Basic Pay).
- CGEGIS: Group Insurance Scheme providing cover and a savings fund element.
3. Health & Family Welfare
| Scheme | Coverage Area | Benefit |
|---|---|---|
| CGHS | Notified Cities (75+) | Cashless treatment in empaneled hospitals (OPD & IPD). |
| FMA | Non-CGHS Areas | ₹3,000/month (Fixed Medical Allowance) for OPD expenses. |
| CS (MA) Rules | Remote Areas | Reimbursement of medical expenses via AMA (Authorized Medical Attendant). |
4. Leave Entitlements (The Time-Off Bank)
Central Govt rules offer the most generous leave policies in the country.
- Earned Leave (EL): 30 days credited annually. Encashable up to 300 days at retirement.
- Half Pay Leave (HPL): 20 days credited annually. Can be converted to “Commuted Leave” on medical grounds (with full pay).
- Child Care Leave (CCL): 730 days (2 years) paid leave for female employees (and single fathers) to take care of minor children (up to 18 years).
- Parental Leave: Maternity Leave (180 days) and Paternity Leave (15 days).
- Study Leave: Up to 24 months for higher education relevant to the department (after 5 years of service).
5. Family Support Allowances
- Children Education Allowance (CEA): Reimbursement of ₹2,812.50 per month per child (Max 2 children).
- Hostel Subsidy: ₹8,437.50 per month per child if staying in a hostel.
How to Claim (Draft Application for CEA)
“To,
The Administrative Officer,
[Department Name].Subject: Claim for Children Education Allowance (CEA) for AY 2025-26.
Sir,
I am submitting the CEA claim for my two children for the academic year 2025-26.
1. Child 1: [Name], Class [X], School [Name].
2. Child 2: [Name], Class [Y], School [Name].The certificate from the Head of Institution confirming the fee payment is enclosed. Kindly reimburse the admissible amount of ₹67,500 (₹33,750 x 2) to my salary account.
Yours faithfully,
[Your Name]”
Frequently Asked Questions
Has the Gratuity limit increased in 2026?
Yes. As per the 7th CPC recommendations accepted by the Govt, when DA crosses 50%, the Gratuity ceiling increases by 25%. Since DA is 60%, the Gratuity limit is now ₹25 Lakhs.
Can I take cash instead of Leave?
You can encash Earned Leave (EL) in two scenarios: 1) Up to 10 days while availing LTC (Max 60 days in career), and 2) Up to 300 days of accumulated EL at the time of retirement.