DA Hike News: Dearness Allowance Increased to 58% from July 2025 – 3% Hike Approved by Finance Ministry

DA Hike News: Dearness Allowance Increased to 58% from July 2025 – 3% Hike Approved by Finance Ministry

New Delhi: Department of Expenditure, Ministry of Finance, has officially announced a 3% increase in Dearness Allowance (DA) for Central Government employees, raising it from 55% to 58% of the Basic Pay, effective from July 1, 2025.

The decision was notified through Office Memorandum No. 1/4(i)/2025-E.II(B) dated October 6, 2025, issued by Deputy Secretary Samir Kumar Das.

According to the Office Memorandum order, the revised DA will apply to all Central Government employees, including those paid from Defence Services Estimates.

Also Read:- Good News for Central Government Employees: Cabinet Approves 3% DA Hike for Central Govt Employees & Pensioners from July 1, 2025

Separate orders for Armed Forces personnel and Railway employees will be issued by the Ministry of Defence and the Ministry of Railways, respectively.

DA Hike Calculation

DA is calculated on the Basic Pay as per the 7th Central Pay Commission (CPC) pay matrix and excludes any other form of pay, such as special pay or allowances. The Finance Ministry clarified that DA will continue to remain a distinct element of remuneration and shall not be treated as pay under FR 9(21).

Fractions of 50 paise and above will be rounded off to the next higher rupee, while smaller fractions will be ignored.

The office memorandum further mentions that the orders have been issued in consultation with the Comptroller and Auditor General of India (CAG), as required under Article 148(5) of the Constitution.