New Delhi: Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved an additional 3% hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective 1 July 2025.
With this hike, DA/DR rises from 55% to 58% of Basic Pay/Pension, providing relief against inflation to all the central government employees and pensioners.
- Beneficiaries: About 49.19 lakh Central Government employees and 68.72 lakh pensioners
- Financial Outgo: The increase will cost the exchequer approximately ₹10,083.96 crore annually
The revision follows the 7th Central Pay Commission’s accepted formula for calculating DA/DR based on the All-India Consumer Price Index (AICPI).
This festive-season relief comes just ahead of Diwali, bringing cheer to lakhs of employees and pensioners who have been awaiting the dearness allowance hike.
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