Dearness Allowance 2025 Hiked to 58% for Central Government Employees

The Ministry of Finance has announced a 3% increase in Dearness Allowance (DA) for Central Government employees, effective 01 July 2025. The revised DA 2025 rate of 58% benefits government employees, pensioners, and defence personnel, helping combat rising inflation and living costs. Stay updated with the latest DA rates, salary revisions, and pension updates for 2025

No.1/4(i)/2025-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

Kartavya Bhavan 1, Kartavya Path,
New Delhi-110001
Dated the 06 th October, 2025

OFFICE MEMORANDUM

Subject: Revision of rates of Dearness Allowance to Central Government employees effective from 01.07.2025.

The undersigned is directed to refer to this Department’s Office Memorandum No. 1/1(1)/2025-E.II(B) dated 2nd April, 2025 on the subject mentioned above and to say that the President is pleased to decide that the rates of Dearness Allowance payable to Central Government employees, shall be enhanced from 55% to 58% of the Basic Pay with effect from 1st July, 2025.

2. The term Basic Pay in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and the Ministry of Railways, respectively.

6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under clause (5) of Article 148 of the Constitution of India.

Hindi version is attached.

(Samir Kumar Das)
Deputy Secretary to the Government of India

Download Central Government Employees July 2025 DA order

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Explore the latest updates on the implementation of the 7th Central Pay Commission’s Dress Allowance guidelines. Learn about the revised rules, eligibility, and benefits for government employees.

No. 19051/1/2017-E.1V
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 24th March, 2025

OFFICE MEMORANDUM

Subject:- Implementation of the recommendations of the 7th Central Pay Commission – Dress Allowance – Modification in the guidelines regarding

The undersigned is directed to refer to this Department’s O.M. No. 19050/1/2017-E.IV dated 02.08.2017 regarding admissibility of Dress Allowance to various categories of Central Government employees.

2. Several references are being received in this Department seeking clarification relating to para “4” of the said OM which provides that the amount of Dress Allowance shall be credited to the salary of employees directly once a year in the month of July.

3. The matter has been considered in this Department and in partial modification of the said OM dated 02.08.2017, the following is clarified:-

i. If a Central Govt. employee has joined service after Dress Allowance is paid in the month of July as per the instructions mentioned in para 4 of the said OM dated 02.08.2017, Dress Allowance would be given on proportionate basis.

ii. Proportionate payment of Dress Allowance would be given by using the following formula:-

= Amount + 12 x No. of months (from the month of joining government service to the month Of june of the following year)

4. Other terms & conditions governing grant of Dress Allowance would be the same as prescribed in the said OM dated 02.08.2017.

5. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller & Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

6. This is issued with the approval of the Secretary (Expenditure).

Hindi version is attached.

Sd/-
(Samir Kumar Das)
Deputy Secretary to the Govt. of India

To,

Copy : O/o C&AG, UPSC etc. as per standard endorsement list.

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GOVERNMENT OF INDIA (भारत सरकार)
Ministry of Railways (रेल मंत्रालय)
Railway Board (रेलवे बोर्ड)

File No. PC-VII/2018/ 1/7/5/6(Part)

New Delhi, dated:  .10.2024

The General Manager/ CAOs(R),
All Indian Railways & Production Units,
(As per mailing list)

Sub: Revision of rate of ‘two’ additional increments (non-absorbable) granted to Nursing Staff.

Consequent upon implementation of 7th CPC pay structure, there has been  number of references from field units inter-alia seeking clarification on continuation /revision of rate ‘two’ additional increments (non-absorbable) granted to eligible Nursing Staff of Railways as per Para – 160 of IREM Vol.I 1989 (revised edition) and Board’s letter RBE No. 33/2012 dated 14.03.2012 (F. No. PC-VI/2010 /I/7/5/1).

2. The issue has been deliberated upon in detail in consultation with concerned directorate(s) taking into account certain recent judgments regarding grant of additional increments (qualification pay) to the nursing staff.

3. Now, it is clarified that the rate of ‘two’ additional increments granted to eligible nursing staff as per Para -160 of IREM Vol.I (Revised Edition – 1989) and as per Board’s letter RBE No. 33/2012 will be revised in terms of 7th CPC pay structure as per the methodology of revision given in Ministry of Health & Family Welfare’s Order No. F. No. Z. 28015/53/2017-N dated 12.11.2020 (copy enclosed as Annexure-l) till such time the relevant provision in IREM will apply. Except revision of rate of ‘additional increments’ there are no other changes in the scheme prevailing in Railways.

Encl. As above

Signed by
Sundeep Pal
Date: 28-10-2024 15:00:46
(Sundeep Pal)
Executive Director (Pay Commission)
Room No. 7/4 Floor,
Railway Board Office, COFMOW Building,
Tilak Bridge, New Delhi

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F. No. 2/1/2023-JCA
Government of India
Ministry of Personnel, PG & Pensions
Department of Personnel & Training
Establishment (JCA) Section

Floor, ‘B’ Wing,
Lok Nayak Bhawan, New Delhi
Dated: 20-03-2024

OFFICE MEMORANDUM 

Subject: Formation of 8th central Pay Commission – regarding.

The undersigned is directed to forward a copy of letter No. IRTSA/Memo-7 dated 26.02.2024 received from Shri R.V. Ramesh, General Secretary, Indian Railways Technical Supervisors’ Association on the subject mentioned above to Department of Expenditure for further necessary action.

Encls: As above.

(Gandharv Kumar Sandilya)
Under Secretary to the Government of India
Tele: 011-2469 4678

To,
Under Secretary (Admin)
Department of Expenditure
North Block
New Delhi

Formation of 8th Central Pay Commission – Demand quoting gist of recommendations of 3rd, 4th. 5th, 6th and 7th CPC about formation of permanent machinery / next pay commission

INDIAN RAILWAYS TECHNICAL SUPERVISORS’ ASSOCIATION

No: IRTSA/Memo-7

Date: 26.02.2024

Smt. Nirmala Sitaraman
Hon’ble Minister for Finance
Respected Madam, Vanakkam.

Sub: Formation of 8th Central Pay Commission.

1) Central Pay Commissions are being constituted at regular intervals of ten years, “to examine, review, evolve and recommend changes regarding the principles that should govern the emoluments’ structure including pay, allowances and other facilities/benefits, in cash or kind, as well as the specialized needs of various Departments, agencies and services, in respect of Central Government employees”.

2) 3rd, 4th and 5th CPCs recommended for constituting permanent machinery to undertake periodical review of the pay, allowances and conditions of service of the Central Government employees.

3) 6th CPC recommended for implementing its recommendations w.e.f. 01.01.2006, ten years period since the implementation of 5th CPC.

4) 7th CPC recommended that the pay matrix may be reviewed periodically without waiting for the long period of ten years. (Gist of recommendations of 3rd, 4th. 5th, 6th and 7th CPC about formation of permanent machinery / next pay commission is given in the annexure)

5) Since the implementation of 7th CPC recommendations w.e.f. 01.01.2016, many changes have taken place in Government functioning, performance & size of Indian economy, GDP growth, quantum of various tax collections, role of various government departments, inflation pattern, erosion of real wages due to inflation, condition of service, role of private sectors in public utilities and government’s regulation over them, number of employees in each department, number of employees covered under National Pension Scheme (NPS), considerable reduction in poverty, changes in consuming pattern of employees & general public, etc.

6) There are many legal cases pending across the country in various courts regarding anomalies in pay level, increment, pay fixation, promotions, MACPS, retirement benefits, etc, consuming precious time of Courts and affecting efficiency of Government functioning.

7) Efficiency in public services should not be compromised for any reasons. There should be a continuous improvement in quality of public service and scope for administrative reforms. New pay commission needs to be constituted for elimination of disparities/anomalies in salaries between different group of employees and for the reasons explained above. Sufficient time should be given to the Pay Commission to study all principles relating to pay & allowance, working conditions, promotional avenue, classification of posts, etc and to hear the views of every stakeholder including staff side.

8) It is therefore requested to constitute 8th Central Pay Commission immediately to enable it to have sufficient time to give comprehensive recommendations to clear all existing anomalies and without giving room for future anomalies.

Thanking you, with regards,

K.V. RAMESH
General Secretary, IRTSA

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Rate of Conveyance Allowance in 7th Pay Commission – Modification: DoE, FinMin OM dated 13.12.2023

No. 19039/3/2017-E.IV
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 13th December, 2023

CORRIGENDUM

Subject:- Rate of conveyance allowance – Modification reg.

The undersigned is directed to refer to this Deptt.’s O.M. of even No. dated 19/07/2017 regarding Implementation of the recommendation of the Seventh Central Pay Commission – Conveyance Allowance and to say that the rate of “fixed Conveyance Allowance” for Journey by own Motor Car in Column 2 at Row 3 for distance range “451-600 km” is modified and the figure may be

Read as Rs.3105

Instead of Rs.2980

2. The other content of the O.M. will remain same.

( A.Bandyopadhyay)
Under Secretary to the Government of India

To
All Ministries/ Departments of the Govt. of India (as per standard distribution list).
C&AG and UPSC etc. (as per standard endorsement list).

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Government of India
Ministry of Defence
(Department of Defence)
D(Civ-I)

Corrigendum

Subject: Circulation of OM issued by DoP&T on “Revised Pay Levels as per recommendations of the Seventh Central Pay Commission – Issue of instructions on revision in minimum qualifying service required for promotion” – regarding.

Reference: MoD ID No. 11(3)/2016- D(Civ-l) dated 22.08.2023.

In partial modification of MoD ID Note of even number dated 22.08.2023 on the above mentioned subject, the first line of the Para, is to be read as under:

For:
All concerned are requested to download the OM dated 04.07.2023 which is stated below, issued by Ministry of Finance (Department of Expenditure) from the website of MoF/DoE for necessary action/compliance,

Read:
All concerned are requested to download the OM dated 20! September 2022 which is stated below, issued by Ministry of Personnel, Public Grievances and Pensions / Department of Personnel & Training.

(Bindulekshmi Pradeep)
Under Secretary to the Govt of India

Government of India
Ministry of Defence
(Department of Defence)
D(Civ-I)

MoD ID No. 11(3)/2016- D(Civ-I)

dated 22.08.2023

Subject: Circulation of OM issued by DoP&T on “Revised Pay Levels as per recommendations of the Seventh Central Pay Commission – Issue of instructions on revision in minimum qualifying service required for promotion” – regarding.

All concerned are requested to download the OM dated 04.07.2023 which is stated below, issued by Ministry of Finance (Department of Expenditure) from the website of MoF/DoE for necessary action/compliance. The provisions contained therein are duly applicable to Defence Civilian Employees paid from Defence Service Estimates. The same are also being uploaded on the Ministry of Defence/ Department of Defence website under the link “Employees Corner > Seventh Central Pay Commission’ to facilitate the immediate implementation.

(Subhash Chand)
Under Secretary to the Govt of India

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Government of India
Ministry of Defence
(Department of Defence)
D(Civ-I)

MoD ID No. 11(3)/2016- D(Civ-I)

dated 22.08.2023

Subject: Circulation of OM issued by DoP&T on “Revised Pay Levels as per recommendations of the Seventh Central Pay Commission – Issue of instructions on revision in minimum qualifying service required for promotion” – regarding.

All concerned are requested to download the OM dated 04.07.2023 which is stated below, issued by Ministry of Finance (Department of Expenditure) from the website of MoF/DoE OM dated 20.09.2022 which is stated below, issued by DoPT from the website of DoPT for necessary action/ compliance. The provisions contained therein are duly applicable to Defence Civilian Employees paid from Defence Service Estimates. The same are also being uploaded on the Ministry of Defence/ Department of Defence website under the link “Employees Corner > Seventh Central Pay Commission’ to facilitate the immediate implementation.

(Subhash Chand)
Under Secretary to the Govt of India

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House Building advance to Defence Service Personnel (Army, Navy and Air Force) – MoD Order dated 19.06.2023

F No. 15(1)/2017/D(Pay/Services)
Government of India
Ministry of Defence
Department of Military Affairs

New Delhi, Dated 19.06.2023

To
The Chief of the Army Staff
The Chief of the Air Staff
The Chief of the Naval Staff

Subject: Grant of House Building advance to Defence Service Personnel (Army, Navy and Air Force) – regarding.

Sir,

In supersession of this Ministry’s letter No. 15(1)/2009/D(Pay/ Services) dated 24-07-2009, I am directed to say that the President has pleased to decide that the Defence personnel may be granted House building Advance under the House Building Advance Rules promulgated by the Ministry of Housing & Urban Affairs vide OM No. 1.17011/11(4)/2016-H-III dated 09-11-2017 as amended from time to time. After considering the recommendations of the 7th CPC and other relevant factors the President is pleased to liberalise further the existing scheme of House Building Advance, as below:-

(a) 34 months’ basic pay subject to a maximum of ₹7 lakhs only (Rupees Seven lakhs), or cost of the house/ flat, or the amount according to repaying capacity, whichever is the least for construction/ purchase of new house/ flat.

(b) For expansion of existing house, the amount of HBA will be limited to 34 months’ basic pay subject to maximum of 6.00 lakhs only (Rupees Six lakhs), or  the cost of the expansion, or the amount according to repaying capacity, whichever is the least.

(c) Cost of the house to be built/ purchased (excluding the cost of plot) should not exceed 139 times of the basic pay of the employee subject to a maximum of 60 lakhs (Rupees Sixty lakhs) only. If the Head of the Department (HOD) is satisfied on the merits of the case, the cost ceiling may be relaxed up to a maximum of 25%. HOD means Adjutant General/ Chief of Logistics/ Air Officer-in-Charge Administration, as the case may be.

2. Repayment Capacity: – For the purpose of calculating the admissible loan amount, the repayment capacity of the central government employee shall be calculated as below: –

3. Applicable Rate of Interest and Methodology of Recovery of House Building Advance: –

(a) The Interest on Housing Building Advance for the financial year 2017-18 onwards shall be 8.50%. This shall be reviewed every three years to be notified In consultation with Ministry of Finance.

(b) The methodology of recovery of HBA shall continue as per the existing pattern of recovery of principal first in the first fifteen years in not more than 180 monthly instalments and interest thereafter in next five years in not more than 60 monthly instalments. The advance carries simple interest from the date of payment of first instalment.

(c) All cases of subsequent tranches/ instalment of HBA being taken by the employee in different financial years shall be governed by the applicable rate of interest in the year in which the HBA was sanctioned, in the event of change in the rate of interest.

Note: The clause of adding a higher rate of interest at 2.5% (two point five percent) above the prescribed rate during sanction of House Building Advance, as reproduced below, stands withdrawn.

“Sanction should stipulate the interest 2.5% over and above the scheduled rates with the stipulation that, if conditions attached to the sanction including those relating to the recovery of amount are fulfilled completely to the satisfaction of competent authority, a rebate on interest of the extent of 2.5% will be allowed”

4. Disbursement: :

(a) Advance for purchase of ready built house can be paid in one lump sum as soon as the applicant executes an agreement in the prescribed form. The employee should ensure that the house Is purchased and mortgaged to the Government within 3 months of drawl of the advances.

(b) Advance for purchase/ construction of new flat may be paid either in one lump sum or in convenient instalments at the discretion of the Head of Department. The employee should execute the agreement in prescribed form before the advance’ first instalment of advance is paid to him/ her. The amount drawn by the employee should be utilized for the purchase/ construction of the flat within one month.

(c) Advance for construction/ expansion of living accommodation, etc. shall be payable in two instalments of 50% each. The first instalment will be paid after the olot and proposed house/ existing house is mortgaged and the balance on the construction-reaching plinth level.

(d) Advance for expansion to be carried out on the upper storey of the house will be disbursed in two instalments, first instalment on executing the mortgage deed and the second instalment on the construction reaching roof-level.

(e) In the case of advance for purchase of plot and construction of house, the advance will be disbursed as below: –

1. Single Storeyed House: After agreement in prescribed form is executed on production of surety bond, 40% of the advance OF actual cost will be disbursed for purchase of plot. The balance amount will be disbursed in two equal instalments, first after the mortgage is executed and second on the construction reaching plinth level.
2. Double Storeyed House: 20% of advance for cost of plot will be disbursed on executing the agreement. The balance amount will be disbursed in two equal instalments, the first on executing the mortgage deed and the second on construction reaching plinth level.

5. Mortgage and Creation of Second Charge: –

(a) House shall be mortgaged on the behalf of President of India. However, the employee, if he wishes to take a second charge to meet the balance cost of the house/ plot or flat from recognized financial institutions, then he/ she May declare the same and apply for NOC at the time of the applying for HBA. NOC for second charge will be given along with sanction order of HBA. The total loan from HBA and from all other sources cannot be beyond ceiling cost of the house as defined under para 1 (c) above.

(b) In case if HBA is availed by both husband/ wife jointly,

• HBA Mortgage paper, insurance paper and other papers regarding property shall be submitted to one of the loan sanctioning authorities of their choice.
• A No Objection Certificate may be obtained from the 2nd loan sanctioning authority.
• The property mortgaged to behalf of President of India, shall be reconvened on the prescribed form to the central government employee concerned (or their successors in interest, as the case may be), after the advance together with interest thereon, has been repaid to Government in full and after obtaining No Demand Certificate in respect of HBA loan sanctioned by the 2″ loan sanctioning authority.

6. Insurance: –

(a) immediately on completion of construction/ purchase of house/ flat, the employee shall insure the house with the recognized institutions as approved by Insurance Regulatory and Development Authority (IRDA), for not less than the amount of advance and shall keep it so insured against damage by fire, flood and lightning till the advance together with interest thereon is repaid in full and deposit the policy documents with the Head of the Department (HOD). Renewal of insurance will be done every year and premium receipts produced for inspection of the HoD regularly.

(b) Penal interest of 2% over and above existing rate of interest will be recovered from the employee for those periods which are not covered by Insurance of the house.

7. Extant Rules: – Apart from above stated changes in relevant sections in the earlier version of House Building Advance rules, all other extant rules, terms and conditions of HBA will be applicable as prescribed under Ministry of Defence letter No.15(1)/99/D(Pay! Services) dated 16-04-1999 and 45(1)/2009/D (Pay/ Services) dated 24-07-2009 as amended from time to time shall continue to apply till further orders.

8. This letter issues with the approval of M/o Finance (Department of Expenditure) vide their I.D. No. 12(01)/2020/E.11.A dated 05.06.2023 and with the concurrence of Ministry of Defence (Finance) vide |. D. No. 3(2)2018-AG/PA/25-PA dated 07 June 2023.

Yours faithfully,

(Laxmi Balasubramanian)
Under Secretary to the Govt. of India

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No.1 (4)/2021/D (Pay/Services)
Government of India
Ministry of Defence
New Delhi

Dated:- 23.05.2023

To,

The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject:- Pay Rules/ Regulations, 2017 for Army/ Navy/ Air Force officers, MNS, JCOS/OR & equivalent- Opportunity for revision of Option to come over to revised Pay Structure.

Sir,
I am directed to refer to Rules 5 & 6 of Pay Rules/ Regulations 2017 for Defence Personnel regarding exercise of option to come over to the revised pay Structure effective from 01.01.2016 as notified by the Pay Rules/Regulations for Defence personnel and to state that the said option was to be exercised within one hundred and eighty days from the date of the notification i.e. 03.05.2017, 30.06.2017 (for NCs(E)) and 14.07.2017 (for MNS), of the said Rules. In this regard vide MoD letter No. 1(29)/2017/D (Pay /Services) dated 06 Aug 2019 an Opportunity to revise the option to come over to revised pay structure was provided. The following Pay Rules/ Regulations, 2017 have been issued for Defence Personnel:-

(a) Army Officers Pay Rules, 2017.
(b) Navy Officers Pay Regulations, 2017.
(c) Air Force Officers Pay Rules, 2017.
(d) Military Nursing Service Pay Rules, 2017.
(e) Army Pay Rules, 2017.
(f) Navy Pay Regulations, 2017.
(g) Air Force Pay Rules, 2017.
(h) NCs (E) of Air Force Rules- 2017.

7th Pay Commission – Opportunity for revision of Option for Defence Personnel

2. Personnel of Army/ Navy/ Air Force/ MNS/ NCs(E) who were promoted/ financially upgraded between 01.01.2016 and the date of Notification of Pay Rules by this Ministry i.e. 03.05.2017 and who have been requesting for re-exercising of option to switch over to the 7th CPC structure shall be permitted to re-exercise their option in terms of Rules 5 & 6 thereof. The revised option shall be exercised within a period of one hundred and eighty days from the date of issue of this letter. The option exercised in terms of these orders shall be final and shall not be liable to any further change under any circumstances. All other terms and conditions laid down in the Said Rules 5 & 6 of Pay Rules/Regulations 2017 shall continue to be applicable.

3. The personnel covered under this letter May also be given Opportunity to revise option for fixation of Pay as per provision of FR22 (i)(a)(1).

4. The other conditions contained in MoF(DoE) OM No. dated 31.07.2018 and 28.11.2019 as adopted by this Ministry, may be duly followed.

5. This issues with the approval of Ministry of Finance vide their ID No. 03-04 /2022- E.IIIA dated 09.05.2023 and concurrence of Defence( Finance) vide their ID Note No. 1(8)2017-AG/PA/ 85-PA/Part-I dated 15.05.2023.

Yours faithfully

(Laxmi Balasubramanian)
Under Secretary to the Govt. of India.

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PP-05/1/2023 -PAP-DOP
/72542/2023

F.No. PP-05/1/ 2023-PAP
Ministry of Communications
Department of Posts
[Establishment Division /P.A.P. Section]

Dak Bhawan, Sansad Marg,
New Delhi- 110001.
Dated: 11.05.2023

To

1. All Chief Postmasters General / Postmasters General
2. Chief General Manager, BD Directorate / Parcel Directorate /PLI Directorate
3. Director, RAKNPA / GM, CEPT / Directors of All PTCs
4, Addl. Director General, Army Postal Service, R.K.Puram, New Delhi
5. All General Managers (Finance) / Directors Postal Accounts /DDAP

Sub: Cooking Allowance to Non- statutory Departmental canteen employees functioning from Central Government Offices consequent upon the recommendations of the VIIth Central Pay Commission reg.

Sir/Madam,

I am directed to forward herewith copy of Department of Personnel & Training OM no. 3/5/2018- Dir (C) dated 01.10.2019 on the above mentioned subject for kind information and necessary action in this regard.

2. All postal circles are directed to ensure strict compliance of the order and to widely circulate this O.M. in all offices including attached/ subordinate offices under their control.

Encl: As above

(R.N. Bharti)
Director (Estt.)

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