On 1-10-2025, the Central Government approved the release of an additional instalment of 3% Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners. The revised rates will be effective from 1-7-2025.
Key Highlights:
-
Chaired by Prime Minister Shri Narendra Modi, the Union Cabinet sanctioned a 3% increase over the existing rate of 55%, raising the total to 58% of Basic Pay/Pension.
-
The increase is expected to have a substantial financial impact on the national exchequer, amounting to approximately ₹10,083.96 crore annually.
-
This move will directly benefit a substantial segment of the Government workforce, including:
-
Employees: 49.19 lakh
-
Pensioners: 68.72 lakh
-
-
This increase is rooted under the recommendations of the 7th Central Pay Commission.
-
As inflation continues to shape economic policy, such revisions remain a vital tool for maintaining the purchasing power of government employees and retirees.
