DA Hike to 58% for Central Govt Staff

Cabinet approves additional instalment of Dearness Allowance and Dearness Relief

Approval Date: October 1, 2025

• Approved By: Union Cabinet chaired by Prime Minister Narendra Modi
• Benefit: An additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.
• Effective Date: July 1, 2025
• Increase: 3% over the existing rate.
• New Rate: Increases from 55% to 58% of Basic Pay/Pension.
• Purpose: To compensate against price rise.
• Financial Impact: ₹10,083.96 crore per annum for the exchequer.
• Beneficiaries: Approximately 49.19 lakh Central Government employees and 68.72 lakh pensioners.
• Basis: In accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

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Cabinet approves additional instalment of three per cent Dearness Allowance to Central Government employees and Dearness Relief to Pensioners

Posted On: 01 OCT 2025 3:06PM by PIB Delhi

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 combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs.10083.96 crore per annum. This will benefit about 49.19 lakh Central Government employees and 68.72 lakh pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

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MJPS/SKS

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