CDS announced two-year extension of Agniveer service under the Agnipath program

After completing the four-year term of service under the Agnipath program, not all Agniveers remain in the army as regular servicemen. According to established procedures and organizational needs, up to 25 percent of them may be included in the permanent force. The remaining servicemen return to civilian life, which raises questions about the benefits provided to them, such as pension, allowance, or quotas for government service.

Service Fund Payment

Agniveers who served four years under the Agnipath scheme are paid a one-time service fund package. This package includes the amount contributed by the Agniveer themselves, as well as an equivalent amount from the state, taking into account applicable interest. According to data published at the beginning of the program, the size of this package was approximately 11.71 million rupees. The Agniveer's contribution was estimated at about 5.02 million rupees, and the state's contribution was an equal amount. Since this is a one-time payment and not a monthly pension, the final amount may change due to interest accrual. It is important to note that this package is exempt from income tax.

Pension and Allowance Issues

Agniveers leaving the army after four years of service do not receive a pension or allowance similar to those granted to regular soldiers. The government initially clarified that the right to a pension and allowance is not provided to servicemen who complete their service under the Agnipath program. However, for those Agniveers who are selected for the permanent force, the service conditions are different: they must serve a minimum of 15 years, after which they become eligible for a pension and other benefits available to regular servicemen.

Insurance Coverage During Service

During the four years of military service, Agniveers are provided with an untaxed insurance coverage of 4.8 million rupees. This insurance does not require the serviceman to pay additional contributions. Nevertheless, this coverage is valid only during the period of service. It automatically ceases upon discharge. In case of death or disability while performing duties, financial assistance and other benefits may be provided according to separate rules depending on the nature of the incident and government norms.

Opportunities in Government Service

To assist Agniveers in employment after completing their service, the government has centrally provided quotas and relaxations regarding age limits when applying for jobs in certain government structures. The Ministry of Home Affairs announced that in July 2026, 50 percent of vacancies for constable (general duty) and rifleman positions in the Central Armed Police Forces (CAPF) and Assam Rifles will be reserved for former Agniveers. Additionally, a three-year reduction in the maximum age limit will be provided. The first batch of Agniveers will receive a five-year reduction. These positions are also exempt from requirements regarding physical standards, physical fitness, and written exams, but candidates must meet the other requirements and rules of the respective competition for employment.

Quotas in the Railway Sector

Indian Railways has set quotas for former Agniveers: 10 percent for Level-1 positions and 5 percent for Level-2 and above positions. Recruitment for these positions is carried out through the respective railway recruitment boards and centers, and candidates must undergo the prescribed procedure and meet the criteria.

Skill Certificates and Education

During military training, Agniveers are taught not only military skills but also technical and other professional competencies. Upon completion of service, they are issued a skill certificate confirming their qualification and experience, which helps them seek employment in the private or public sector outside the army. Furthermore, the Ministry of Skill Development and Entrepreneurship has entered into agreements with NIOS and IGNOU to enhance the educational level of Agniveers. Under these agreements, eligible Agniveers are given the opportunity to obtain certificates of secondary and higher secondary education, as well as a bachelor's degree. The government also provides priority allocation of MSME loans to support small business startups for Agniveers leaving service.

Differences in Benefits

It is important to understand that although Agniveers completing their service receive a service fund, skill certificates, and employment opportunities, they are not entitled to a pension and allowance like regular soldiers. The service conditions for those who enter the permanent force are different. Therefore, when assessing the benefits of Agniveers, it is necessary to distinguish between servicemen discharged after four years and those who remain in the regular army. Quotas and relaxations in government service are applied according to the rules of the specific competition and available vacancies.

The Indian government is seriously studying the possibility of granting additional time to some Agniveers recruited under the Agnipath scheme, in addition to including them in permanent service. Several high-level meetings have taken place regarding this proposal in recent days.

The first group of Agniveers is nearing the end of their four-year service term, which expires on November 21, 2026. The selection process for permanent service is currently ongoing. Now, the government is also considering the possibility of keeping some Agniveers who do not make the permanent list in service for a period of time.

Under the Agnipath scheme, young people serve in the armed forces for four years, with a provision for the permanent retention of 25 percent of them. The rest are sent home.

Currently, the government is contemplating the option of extending the service of some additional Agniveers from the latest batch. This decision is significant because a large number of Agniveers will be leaving service for the first time. Officials state that there are no official announcements yet, but a decision is expected before November 21.

If the extension proposal is approved, many young people will get a chance for additional experience and income. This will also benefit the army in the form of trained personnel. At the same time, the need to increase the transparency of the permanent recruitment process is emphasized. This step may help make the Agnipath scheme more practical. The government will make its decision considering both the future of the youth and military readiness.

The National Treasury announced on Wednesday that the Social Relief of Distress (SRD) grant of R370 will be extended in its current format for another year while a replacement for this grant is being considered.

The National Treasury stated that the grant will be extended for one year while work continues on integration with labor market activation measures, skills development, and business support. Recipients will be linked to employment, training, and business opportunities through the MzansiXchange data exchange platform, which will allow verification of recipients across various government departments.

The continuation of the SRD does not align with the promise made by Finance Minister Enoch Godongwana, who stated that his Medium Term Budget Policy Statement (MTBPS) should outline the modalities and format of the so-called Living Subsistence Grant mentioned by President Cyril Ramaphosa.

Ramaphosa previously stated in his Address to the Nation that the SRD grant played a crucial role in alleviating widespread poverty. At that time, he noted: 'This year we will rework the grant so that it more effectively supports livelihoods, skills development, job opportunities, and productive activity.'

In February, Godongwana announced that discussions are underway regarding a new Living Subsistence Grant that will replace the SRD. The SRD grant was introduced during the Covid-19 pandemic in March 2020 and became a lifeline for millions of South Africans facing food shortages.

Godongwana additionally allocated R36.4 billion in February to extend SRD payments until March 31, 2027, at the current rate of R370 per month per recipient. This amount exceeds the R34.2 billion allocated in the 2025/26 financial year.

Meanwhile, the National Treasury has included SRD in the list of three expenditure risks facing the government, alongside the Student Financial Aid Scheme and employee compensation. The MTBPS states: 'Litigation regarding regulations governing the social relief of distress grant represents a significant expenditure risk.'

The government has lodged an appeal with the Supreme Court of Appeal against a High Court ruling from January of this year, which invalidated the means test threshold, grant amount, income definition, and income verification mechanisms.

The National Treasury warned that the fiscal impact will depend on the outcome of the legal proceedings and political response. It was noted that the number of recipients and the total cost of SRD could increase significantly if the High Court's decision is upheld. Preliminary estimates suggest this could add three million potential recipients and increase the annual funding requirement from approximately R36 billion to R74 billion.