{"id":362262,"date":"2025-10-01T17:30:28","date_gmt":"2025-10-01T12:00:28","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=362262"},"modified":"2025-10-01T19:32:11","modified_gmt":"2025-10-01T14:02:11","slug":"cabinet-increases-3-percent-da-dr-july-2025","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/01\/cabinet-increases-3-percent-da-dr-july-2025\/","title":{"rendered":"Cabinet approves 3% Increase in DA and DR"},"content":{"rendered":"
\n

On 1-10-2025, the Central Government approved the release of an additional instalment of 3% Dearness Allowance<\/span> (DA) to Central Government employees and Dearness Relief<\/span> (DR) to Pensioners. The revised rates will be effective from 1-7-2025<\/span>.<\/p>\n

Key Highlights:<\/h3>\n
    \n
  1. \n

    Chaired by Prime Minister Shri Narendra Modi, the Union Cabinet sanctioned a 3% increase<\/span> over the existing rate of 55%<\/span>, raising the total to 58% of Basic Pay\/Pension<\/span>.<\/p>\n<\/li>\n

  2. \n

    The increase is expected to have a substantial financial impact on the national exchequer, amounting to approximately ₹10,083.96 crore<\/span> annually.<\/p>\n<\/li>\n

  3. \n

    This move will directly benefit a substantial segment of the Government workforce, including:<\/p>\n

      \n
    • \n

      Employees: 49.19 lakh<\/p>\n<\/li>\n

    • \n

      Pensioners: 68.72 lakh<\/p>\n<\/li>\n<\/ul>\n<\/li>\n

    • \n

      This increase is rooted under the recommendations of the 7th<\/span> Central Pay Commission<\/span>.<\/p>\n<\/li>\n

    • \n

      As inflation continues to shape economic policy, such revisions remain a vital tool for maintaining the purchasing power of government employees and retirees.<\/p>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      Cabinet approved a 3% increase in Dearness Allowance and Dearness Relief for Central Government employees and pensioners, effective from July 2025.<\/p>\n","protected":false},"author":67525,"featured_media":362303,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29535,4],"tags":[47750,39663,62869,90180,39996,39997,90181,29876,37390],"class_list":["post-362262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet_decisions","category-legislationupdates","tag-7th-pay-commission","tag-central-government-employees","tag-central-pay-commission","tag-da-hike","tag-dearness-allowance","tag-dearness-relief","tag-dr-hike","tag-pensioners","tag-union-cabinet"],"yoast_head":"\nCabinet Increases 3% DA\/DR for Govt Employees | SCC Times<\/title>\n<meta name=\"description\" content=\"Cabinet increases 3% DA\/DR 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| Cabinet approves 5% hike in “Dearness Allowance”","author":"Bhumika Indulia","date":"October 9, 2019","format":false,"excerpt":"Union Cabinet has approved a 5% hike in the dearness allowance (DA) for Central Government Employees and pensioners. The said rate will be applicable retrospectively from July this year. As reported by outlook,\u00a0Union Cabinet chaired by Prime Minister Narendra Modi approved the 5 percent additional DA\/DR (dearness relief) over the\u2026","rel":"","context":"In "Cabinet Decisions"","block_context":{"text":"Cabinet Decisions","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/cabinet_decisions\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":227028,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/03\/14\/cabinet-approves-release-of-an-additional-installment-of-dearness-allowance-and-dearness-relief-due-from-1-1-2020\/","url_meta":{"origin":362262,"position":1},"title":"Cabinet approves release of an additional installment of Dearness Allowance and Dearness Relief due from 1.1.2020","author":"Bhumika Indulia","date":"March 14, 2020","format":false,"excerpt":"Union Cabinet has approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020.\u00a0 There will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay\/Pension, to compensate for price rise. The\u2026","rel":"","context":"In "Cabinet Decisions"","block_context":{"text":"Cabinet Decisions","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/cabinet_decisions\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":305247,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/10\/19\/cabinet-approves-hike-in-dearness-allowance-and-dearness-relief-legal-news\/","url_meta":{"origin":362262,"position":2},"title":"Cabinet approves 4% hike in DA and DR w.e.f. from 1-7-2023","author":"Kriti","date":"October 19, 2023","format":false,"excerpt":"On 18-10-2023, the Union Cabinet has approved a 4% hike in Dearness Allowance (\u2018DA\u2019) for Central Government employees and Dearness Relief (\u2018DR\u2019) for pensioners. Key Points: The hike is an additional instalment with effect from 1-7-2023. The 4% is over the existing rate of 42% of Basic Pay\/ Pension, to\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"4% hike DA and DR","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/4-hike-DA-and-DR.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/4-hike-DA-and-DR.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/4-hike-DA-and-DR.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/4-hike-DA-and-DR.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":230397,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/06\/03\/del-hc-central-govt-empowered-to-postpone-payment-of-dearness-allowance-challenge-to-unions-decision-of-postponing-payment-of-da-rejected\/","url_meta":{"origin":362262,"position":3},"title":"Del HC | Central Govt. empowered to postpone payment of Dearness Allowance: Challenge to Union\u2019s decision of postponing payment of DA rejected","author":"Bhumika Indulia","date":"June 3, 2020","format":false,"excerpt":"Delhi High Court: A Division Bench of Vipin Sanghi and Rajnish Bhatnagar, JJ. held that it is well within the domain of the Central Government to decide as to when to disburse the Dearness Allowance (\u201cDA\u201d) and Dearness Relief (\u201cDR\u201d). The Bench was hearing a writ petition filed in public\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":253785,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/07\/arunachal-pradesh-government-grants-dearness-allowance-to-pensioners\/","url_meta":{"origin":362262,"position":4},"title":"Arunachal Pradesh | Government grants dearness allowance to pensioners","author":"Prachi Bhardwaj","date":"September 7, 2021","format":false,"excerpt":"The Government of Arunachal Pradesh has granted dearness relief to government pensioners or pensioner\u2019s families with an advice for early payment of the entitlement vide circular dated September 01, 2021. The Dearness relief payable to the government pensioners has been increased from 17% to 28%. The circular shall come into\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-11.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-11.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-11.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-11.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/09\/MicrosoftTeams-image-11.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":251624,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/23\/rates-of-dearness-allowance-to-central-government-employees-revised\/","url_meta":{"origin":362262,"position":5},"title":"Rates of Dearness Allowance to Central Government employees revised","author":"Bhumika Indulia","date":"July 23, 2021","format":false,"excerpt":"On July 20, 2021, the Ministry of Finance has issued a memorandum on revision of Dearness Allowance to the Central Government employees. 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