GG News Bureau
New Delhi, 1st Oct: 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, effective from 1 July 2025.
The hike represents an increase of 3% over the current rate of 55% of Basic Pay/Pension to offset rising prices.
The combined financial impact of the DA and DR increase is estimated at ₹10,083.96 crore per annum. Approximately 49.19 lakh Central Government employees and 68.72 lakh pensioners will benefit from this revision.
This hike follows the formula recommended by the 7th Central Pay Commission and accepted by the government.
