The Union Cabinet Wednesday approved a 3 per cent additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.
The hike will take effect from October 1, 2025, and will be stacked on top of the existing rate of 55 per cent of the Basic Pay/Pension.
DA hike central government
The Prime Minister Narendra Modi-led Union Cabinet’s decision is set to benefit 49.19 lakh central government employees and 68.72 pensioners, and was taken with a view to compensate against price rise, a release from the Press Information Bureau said.
Who all will benefit
Distribution of DA Hike across Central Government workforce
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49.19L
Central Govt. Employees
Active workforce benefitting from DA increase
increase
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68.72L
Pensioners
Retired personnel receiving DR increase
Total Beneficiaries
117.91 Lakh
The total impact on the exchequer due to the Dearness Allowance and Dearness Relief increase will be Rs 10,083.96 crore per annum.
DA latest news today 2025
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, the release said.
In March this year, the Cabinet had increased the DA by 2 per cent, bringing the rate to 55 per cent effective January 1, 2025.
