Central Government employees in Kerala are receiving an early Onam gift this year in the form of advanced salary disbursement. The central government has decided to release the August salaries, wages, and pensions today, August 25, 2025, ahead of the Onam festival which falls on September 4 and 5.

This move by the central government aims to ease the financial burden on employees during the festive season. Festivals often involve increased household spending on items such as food, clothing, home decorations, travel, and gifts. By providing the salary in advance, the government intends to help employees manage these additional expenses more comfortably. Pensioners will also benefit from the advanced disbursement.

The Ministry of Finance has issued an office memorandum confirming the early release of salaries, wages, and pensions for central government employees in Kerala. This applies to all central government offices, including those in defense, posts, and telecommunications, as well as industrial employees in the state. The Reserve Bank of India (RBI) has been requested to instruct all paying bank branches in Kerala to ensure a smooth disbursal of funds.

It is important to note that the disbursed salary, wages, and pension will be treated as advance payments. According to the Finance Ministry, the final salary, pension, or wage calculation for August 2025, including any additional reimbursements or payments, will be adjusted later. Any shortfall or excess will be balanced in the subsequent month's disbursement. The ministry has clarified that the adjustment will be made without exception from the salary/wages/ pension of the month of August 2025.

The central government has also announced a similar measure for its employees and pensioners in Maharashtra, with salaries to be disbursed on August 26, 2025, ahead of the Ganesh Chaturthi festival.

Meanwhile, the Kerala state government has issued guidelines for bonus payments in Public Sector Undertakings (PSUs). These guidelines restrict loss-making companies to the statutory minimum bonus and state that officials will be personally liable for any excess payouts. Profit-making units may provide higher bonuses, but they cannot exceed 20% of wages or salary for the accounting year.