49.19 Lakh Central Government Employees, 68.72 Lakh Pensioners To Benefit As Union Cabinet Approves 3 Per Cent Hike In DA, DR

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.

The revision will take effect from 1 July 2025.

With this decision, the DA and DR rates have been increased by 3 per cent, raising the existing level from 55 per cent to 58 per cent of Basic Pay and Pension.

The step is aimed at offsetting the impact of rising prices and maintaining the real value of wages and pensions for employees and retirees.

"The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f  01.07.2025 representing an increase of 3% over the existing rate of 55% of the Basic Pay/Pension, to compensate against price rise," the government said in a statement on Wednesday (1 October).

The measure is expected to benefit around 49.19 lakh serving Central Government employees and 68.72 lakh pensioners, providing them with additional financial relief.

The increase has been made in line with the accepted formula based on the recommendations of the 7th Central Pay Commission, which prescribes adjustments twice a year to reflect changes in inflation.

The decision underscores the government’s commitment to supporting its workforce and pensioners by cushioning them against inflationary pressures.

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