In a major welfare push for India’s armed forces community, the Union government has approved a significant increase in financial assistance for non-pensioner ex-servicemen (ESM) and their dependents. The announcement, made by Defence Minister Rajnath Singh on Wednesday, marks a 100% enhancement in aid under multiple welfare schemes administered by the Department of Ex-Servicemen Welfare (DESW) through the Kendriya Sainik Board. Coming just ahead of Diwali, the move is expected to benefit nearly 20,000 veterans and their families, at an estimated annual cost of ₹257 crore to the exchequer.

The decision underscores the government’s continuing efforts to extend the social safety net for those who served in uniform but do not receive a regular pension, reaffirming its commitment to honouring the sacrifices of India’s soldiers and their families. “The revised financial assistance rates will come into effect for applications submitted from November 1, 2025 onwards,” the Defence Ministry said in an official statement. The expenditure will be met from the Armed Forces Flag Day Fund (AFFDF), specifically from its subset, the Raksha Mantri Ex-Servicemen Welfare Fund.

Addressing the needs of non-pensioner veterans

Unlike regular pensioner ex-servicemen, who receive monthly pension payments post-retirement, non-pensioner ESM are those who were discharged early from military service. This may occur due to organisational downsizing, restructuring, or personal reasons. Officers who retire before completing 20 years of service and personnel below officer rank (PBOR) who leave before completing 15 years fall into this category. These veterans, while having served the nation, often find themselves in financially vulnerable situations due to the absence of a steady post-service income.

The latest announcement seeks to alleviate that hardship by doubling the existing assistance across several categories — including the penury grant, education grant, and marriage grant. The ministry said the increase takes into account inflation, rising living costs, and the need to provide sustained support to vulnerable groups within the ex-servicemen community.

Doubling of penury grant: a lifeline for aged veterans

The penury grant — which provides financial relief to ex-servicemen and widows with no regular income — has been doubled from ₹4,000 to ₹8,000 per month per beneficiary. This benefit is available to non-pensioner veterans and widows above 65 years of age, particularly those from lower-income backgrounds.

“The penury grant provides sustained lifetime support to aged and non-pensioner ESM and their widows who have no regular source of income,” the ministry said. The grant has long served as a critical safety net for elderly veterans who have outlived their savings and lack access to formal pensions or welfare schemes. With the doubling of the amount, the government aims to ensure a basic standard of living for this demographic, whose needs often go unnoticed.

Veteran associations have welcomed the move, calling it timely and humane. Many have pointed out that the value of the penury grant had eroded over the years due to inflation, and the increase will bring much-needed relief. However, some have also urged the ministry to review the eligibility criteria to include a wider segment of veterans facing financial distress.

Boost to education grants for families

The education grant, another key component of the welfare package, has also been doubled. It will now stand at ₹2,000 per month per head for up to two dependent children of non-pensioner ESM, from Class I to graduation level. Widows pursuing a two-year postgraduate course are also eligible for the same amount.

The grant is designed to help families bear the growing cost of education, especially for those from rural or economically weaker backgrounds. With the increase, the government aims to promote educational continuity and empower the next generation of armed forces families. “Education remains a cornerstone of empowerment, and supporting the children of those who served ensures that their families continue to thrive,” a senior defence official said.

The emphasis on education aligns with the government’s broader policy of ensuring equitable opportunities for children of service personnel, particularly those from non-pensioner and low-income backgrounds who often face financial barriers to higher studies.

Marriage grants raised to ₹1 lakh

The government has also raised the marriage grant from ₹50,000 to ₹1,00,000 per beneficiary. This grant is applicable for up to two daughters of a non-pensioner ESM and also covers the remarriage of widows, provided the marriage is solemnised after the issuance of the new order.

The revision acknowledges the growing expenses associated with social functions such as marriage, especially for low-income families. Officials have noted that the marriage grant is among the most sought-after forms of financial aid under the welfare schemes, and doubling the amount will significantly reduce the financial strain on beneficiaries.

Funded by Armed Forces Flag Day Fund

The enhanced assistance will be financed through the Armed Forces Flag Day Fund (AFFDF), which serves as the central pool for welfare schemes supporting ex-servicemen, widows, and dependents. The AFFDF is sustained through public contributions collected during the Armed Forces Flag Day observed every year on December 7. These funds are used to finance education, housing, rehabilitation, and healthcare initiatives for veterans and their families.

The Raksha Mantri Ex-Servicemen Welfare Fund, a dedicated subset of the AFFDF, will be the specific source of funding for these increased grants. The ministry noted that the annual financial implication of ₹257 crore will be fully absorbed within existing fund allocations, reflecting efficient management and prioritisation of veteran welfare.

Government’s larger focus on veterans’ welfare

This announcement is the latest in a series of initiatives aimed at strengthening the welfare ecosystem for India’s veterans. Over the past few years, the Ministry of Defence has rolled out several measures to address the social and financial challenges faced by ex-servicemen, including housing support, healthcare coverage, and rehabilitation programmes.

The government has also worked to streamline administrative processes through digitalisation, allowing beneficiaries to apply for and receive grants online through the Kendriya Sainik Board’s web portal. Efforts are underway to improve awareness about these schemes at the district and block levels, ensuring that eligible beneficiaries, particularly in remote areas, can access them.

In addition, the government has expanded its partnerships with state-level Sainik Boards to ensure efficient fund disbursement and better monitoring of welfare activities. Officials said that the new financial boost will enhance the reach and impact of these initiatives.

A message of recognition and gratitude

Announcing the decision, Defence Minister Rajnath Singh reiterated that the welfare of serving and retired defence personnel remains a top priority for the government. “This decision reaffirms our government’s commitment to honouring the service and sacrifice of those who defended the nation. The welfare of our soldiers and their families will always remain paramount,” Singh said in the statement.

The announcement, timed in the festive season, carries symbolic as well as practical significance. For many veterans and widows, the enhanced grants will translate into improved financial stability and a sense of recognition from the government and society.

As India continues to modernise its armed forces, the move also reflects a growing focus on human welfare and post-service support — ensuring that those who serve the nation are not left behind once their active duty ends.

By doubling the financial aid for non-pensioner veterans, the government not only strengthens its social contract with former soldiers but also sets a precedent for compassionate governance that values service and sacrifice beyond the battlefield.