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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3℅ DA Hike

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

Cabinet

Posted On: 01 OCT 2025

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.

PIB

• Cabinet approves 3% hike in Dearness Allowance (DA) for Central Government employees effective 01 July 2025.

• Dearness Relief (DR) for pensioners also increased by 3%, raising the total to 58% of Basic Pay/Pension.
• Decision approved in the meeting chaired by Prime Minister Narendra Modi on 01 October 2025.
• Over 49.19 lakh employees and 68.72 lakh pensioners to benefit from the DA/DR hike.
• Total financial impact: ₹10,083.96 crore annually on the government exchequer.
• Hike implemented to offset inflation and price rise, following the 7th Central Pay Commission recommendations.
• New DA and DR rates aimed at enhancing income and social security for government employees and pensioners.

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Great news for central government employees and pensioners: a significant Dearness Allowance (DA) hike of 3-4% is set to take effect from July 2025. This increase aims to alleviate the impact of inflation by raising the current DA rates. Once approved, it’ll result in noticeably higher monthly allowances for eligible individuals. The government officially announced that this adjustment will be part of the July payroll cycle.

According to Central Government employees and pensioners, the government is expected to announce a Dearness Allowance (DA) hike of 3-4% effective from July 1, 2025. This periodic increase is designed to offset rising inflation and maintain the real income of government staff.

What Is Dearness Allowance (DA)?

Dearness Allowance is a cost-of-living adjustment allowance paid to government employees and pensioners. It is revised twice a year in January and July based on the Consumer Price Index for Industrial Workers (CPI-IW).

Latest DA Hike Details – July 2025

Estimated Financial Impact

For a central government employee earning a basic pay of ₹50,000:

• Current DA (50%) = ₹25,000
• Expected DA (54%) = ₹27,000
• Increase in DA = ₹2,000/month
• Annual Gain = ₹24,000

Why This DA Hike Matters

• 🛒 Inflation Relief: Helps counteract the effects of inflation.
• 👨‍👩‍👧‍👦 Household Budget Boost: More disposable income for families.
• 🏛️ Retiree Support: Pensioners benefit from increased monthly payouts.
• 💼 Morale Booster: Strengthens employee satisfaction and motivation.

When Will It Be Officially Announced?

The formal announcement is expected by mid-September 2025, after the All-India CPI-IW data for June 2025 is finalized. The increase will be approved in a Cabinet meeting and included in the July 2025 salary slip, along with arrears if there is any delay in implementation.

Conclusion

This upcoming DA hike is a positive step by the government to support its workforce and retirees amid rising living costs. As inflation continues to fluctuate, such adjustments play a vital role in ensuring economic stability and employee well-being.

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Tamil Nadu Government Increases Dearness Allowance by 2% in Jan 2025

In line with the Central Government’s approval of a 2% Dearness Allowance (DA) hike, the Tamil Nadu Government has announced a 2% increase in Dearness Allowance for its employees, effective from January 1, 2025, Chief Minister M.K. Stalin said. This Dearness Allowance revision in Tamil Nadu 2025 will benefit over 16 lakh government employees, teachers, and pensioners across the State. The decision is expected to cost the Tamil Nadu State exchequer ₹1,252 crore annually, supporting the welfare of public sector workers and retirees.

தமிழ்நாடு அரசு, தனது ஊழியர்களுக்கான அகவிலைப்படி தொகையை 2% உயர்த்தியுள்ளது. இந்த உயர்வு 2025 ஜனவரி 1 முதல் அமலுக்கு வரும். இதனால் 16 லட்சம் அரசு ஊழியர்கள், ஆசிரியர்கள் மற்றும் ஓய்வூதியதாரர்கள் பயனடைவார்கள். ஆண்டுக்கு ரூ.1,252 கோடி செலவு அரசுக்கு ஏற்படும்.

Download Tamilnadu Government Employees DA Order Jan 2025 PDF

Tamil Nadu Govt hikes 2% DA for state government employees from Jan 2025

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The Dearness Allowance (DA) for employees still receiving pay under the pre-revised pay scale/Grade Pay of the 6th Central Pay Commission will be increased from 246% to 252% of Basic Pay, effective from January 1, 2025.

No. 1/1(2)/2025-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 2nd April, 2025

OFFICE MEMORANDUM

Subject: Revision of Dearness Allowance to the employees, who are continuing to draw their pay in the pay scale/Grade Pay as per 6th Central Pay Commission

The undersigned is directed to refer to this Department’s O.M. No. 1/6(1)/2024 -E.II(B) dated 7th November, 2024 on the subject mentioned above and to say that the rate of Dearness Allowance (DA) in respect of employees, who are continuing to draw their pay in the pre-revised pay scale/Grade Pay as per 6th Central Pay Commission, shall be enhanced from the existing rate of 246% to 252% of Basic Pay w.e.f. 01.01.2025.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M.No.1(3)/2008-E.1II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The contents of this Office Memorandum may also be brought to the notice of all organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

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

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5th CPC – The Dearness Allowance (DA) for employees who are still receiving their pay based on the pre-revised pay scale under the 5th Central Pay Commission will be increased from 455% to 466% of Basic Pay, effective from January 1, 2025.

No. 1/1(3)/2025-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 2nd April, 2025

OFFICE MEMORANDUM

Subject: Revision of rates of Dearness Allowance to the employees, who are continuing to draw their pay in the pay scale as per 5th Central Pay Commission.

The undersigned is directed to refer to this Department’s O.M. No. 1/6(2)/2024-E.II(B) dated 7th November 2024 on the subject mentioned above and to say that the rate of Dearness Allowance (DA) in respect of employees, who are continuing to draw their pay in the pre-revised pay scale as per 5th Central Pay Commission, shall be enhanced from the existing rate of 455% to 466% of Basic Pay w.e.f. 01.01.2025.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M.No.1(13)/97-E.II(B) dated 3 October, 1997 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The contents of this Office Memorandum may also be brought to the notice of all organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

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

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Revision of rates of Dearness Allowance to Central Government employees effective from 01.01.2025 – 53% to 55% of the Basic Pay with effect from 1st January, 2025.

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

OFFICE MEMORANDUM

North Block, New Delhi
Dated the 2nd April, 2025

Subject: Revision of rates of Dearness Allowance to Central Government employees – effective from 01.01.2025.

The undersigned is directed to refer to this Department’s Office Memorandum No. 1/5/2024- E.II(B) dated 21st October, 2024 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 53% to 55% of the Basic Pay with effect from 1st January, 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. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2025.
6. 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 Ministry of Railways, respectively.
7. 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

To
All Ministries/ Departments of the Government of India (as per standard distribution list)

Download Fin Min DA Order Jan 2025

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Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners w.e.f. 01.01.2025

48.66 lakh Central Government employees and 66.55 lakhs pensioners to benefit

2% benefit to cost Rs. 6614.04 crore per annum to exchequer

The Union Cabinet chaired by Prime Minister Narendra Modi approved to release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53% 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. 6614.04 crore per annum. This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.

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

PIB

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CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001

Ref: Confed./2025/Improvement in DA & DR/

Dated – 17.01.2025

To,
The Cabinet Secretary,
Government of India,
Rashtrapati Bhawan,
New Delhi -110004
Email address : cabinet[at]nic.in

Sub: Request for the improvement in computation of Dearness Allowance & Dearness Relief for Central Government Employees and Pensioners- reg.

Respected Sir,

The Confederation of Central Government Employees and Workers, represents about 7 lakhs Central Government employees, working in various Departments of Central Government Departments viz., Postal, Income tax, AG’S, Audit Departments, Survey Departments, Census, GSI, CPWD, CGHS, SREE CHITHRA etc. numbering about 130 Associations & Federations are affiliates of Confederation of Central Government employees and Workers.

The Confederation extends its warm festive Greetings and new year wishes.

The main improvements suggested in computation of Dearness Allowance & Dearness Relief of Central Government employees & pensioners sought are as below; –

1) The DA formula is as below:

For Central Government Employees:
DA = { (Average of AICPI (Base year 2016=100) for the last 12 months – 115.76)/115.76 } x 100

For Public Sector Employee:
DA = { (Average of AICPI (Base year 2001=100) for the last 3 months – 126.33)/126.33 } x 100

The above formula needs modifications.

The formula to calculate the Dearness Allowance (DA) for bank employees is:

• DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] x 100

2) The average of 12 months should be replaced by a three months average that means variable DA should be given so that the employees get compensated by actual price rise every three months.as in public sector employees and Banks employees.

The DA of banking employees are revised every quarter i.e. Feb-April, May-July, August- October and November- Jan every year

If a price rise is taking place in January, it is compensated partially after 12 months. The DA should be calculated and paid every three months instead of six months

3) Point to point DA should be provided, now the DA is rounded off to lowest value if we are eligible for 42.90 % DA we are sanctioned only 42% DA, the 0.9 % DA is being deprived to the CG employees for six months, the point-to-point DA should be provided to us as in the case of Banks and LIC employees get the DA even point to point DA.

4) Construct a separate consumer index for the Central Government Employees and Pensioners.

The items used for calculation of the Consumer price index is 465 items after the new series 2016 was adopted by the Government. As many of these items are not used by the central government employees in day-to-day life, it neutralizes the effect of price rise of the actual items used by the central government employees and pensioners, we are getting less dearness allowance than the actual price rise happening. Hence there is a need to construct a separate consumer index for the central government employees and pensioners.

Recommendation of 6th CPC vide para no 4.1.13

The Commission is of the view that the National Statistical Commission may be asked to explore the possibility of a specific survey covering Government employees exclusively, so as to construct a consumption basket representative of Government employees and formulate a separate index. Meanwhile, the Government may continue to use the AICPI (IW) for estimating the DA.

Hence separate DA / AICPI should be formed for Government employees

5) The Labour Bureau, which is an attached office of the M/O Labour & Employment, has been compiling Consumer Price Index for Industrial workers every month on the basis of retail prices collected from 317 markets spread over 88 industrial important centres in the country. The index is compiled for 88 industrial important centres and All India Consumer Price Index is released on the last working day of succeeding month by Ministry Of Labour & Employment, Labour Bureau Chandigarh on last day of the month on which the DA is calculated every six months.

The Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla and the retail prices are showing different retail rates, the retail prices of essential commodities are at higher end including that of state Government run co-operative societies compared to the retail prices maintained by Labour Bureau, Shimla, not on prevailing market retail rates, net difference of price of commodities varies up to 30 %.

The retail prices are higher in other Central Government Departments, compared to the Labour Bureau, Shimla such as Directorate of Economics & Statistics prices which is also a Central Government Department https://rpms.dacnet.nic.in/

&

Department Of Consumer Affairs (Price Monitoring Division) https://fcainfoweb.nic.in/

Therefore, the CG employees & pensioners are deprived of proper Consumer Price Index as retail prices maintained by Labour Bureau, Shimla are adopting lower prices.

The Dearness Allowance and Dearness relief is based upon the Consumer Price Index (CPI) points.

Hence proper methodology shall be adopted at arriving at the retail prices of the items, which leads to construction of the Consumer Price Index (CPI).

The above main improvements suggested in Dearness Allowance & Dearness Relief of Central Government employees & pensioners is requested to be implemented at the earliest.

With Regards,

Yours Sincerely,
(S.B. Yadav)
Secretary General

Copy to,
The Secretary General, Staff Side, NC JCM New Delhi.

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Grant of Dearness Allowance to Railway employees – Revised Rates effective from 01.07.2024: RBE No. 99/2024 dated 22.10.2024.

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

PC-VII No.- 219

RBE No: 99/2024

File No. PC-VIH/2016/ 1/7/2/1

New Delhi, dated: 22.10.2024

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

Sub: Grant of Dearness Allowance to Railway employees – Revised Rates effective from 01.07.2024.

The undersigned is directed to refer to this Ministry’s letter RBE No. 26/2024 dated 15.03.2024 (F.No. PC-VII/2016/1/7/2/1) on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Railway employees shall be enhanced from the existing rate of 50% to 53% of the Basic Pay with effect from 1st July, 2024.

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 distinct element of remuneration and will not be treated as pay within the ambit of Rule 1303 (FR 9(21)), Indian Railway Establishment Code, Volume -II (Sixth Edition – 1987) – Second Reprint 2005.

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

5. This issues with the concurrence of Finance Directorate of Ministry of Railways.

(Jaya Kumar G)
Deputy Director, Pay Commission-VII & HRMS
Railway Board

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