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

PC-VII No.- 173

RBE No.: 52/2021

File No. PC-VII/2016/I/7/2/1

New Delhi, dated: 20.07.2021

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

Sub: Revised rates of Dearness Allowance to Indian Railway employees w.e.f. 01.07.2021

The undersigned is directed to refer to this Ministry’s letter No. PC-VII/2016/1/7/2/3 dated 27.04.2020 vide which instalments of Dearness Allowance to Railway employees due from 01.01.2020, 01.07.2020 and 01.01.2021, were frozen and to say that the President is pleased to decide that the Dearness Allowance payable to Indian Railway employees shall be enhanced from the existing rate of 17% to 28% of the Basic Pay with effect from 1st July, 2021. The increase subsumes the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance for the period from 01.01.2020 till 30.06.2021 shall remain at 17%.

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.

(M. K. Gupta)
Executive Director, Pay Commission-II
Railway Board

File No. PC-VII/2016/1/7/2/1 New Delhi, dated: 20.07.2021

Copy (with 40 spares) forwarded to the A.D.A.I., Railways, New Delhi.

For Member (Finance) Railway

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New Delhi: President Pranab Mukherjee has given his approval to payment of a 2 per cent Dearness Allowance (DA) to central government employees. DoPT Official Order

The move will benefit about 50.68 lakh employees and 54.24 lakh pensioners.

The decision to provide 2 per cent DA on basic pay was earlier approved by the Union Cabinet and will be applicable from July 1.

The DA will result in an annual burden of Rs 5,622.10 crore.

Consequent upon the decision taken by the government on recommendations of the 7th Central Pay Commission relating to DA, the President is pleased to decide that the DA to all categories of the central government employees shall be admissible at the rate of 2 per cent of basic pay per month, w.e.f 1.7.2016, the Finance Ministry OM said.

The revised pay structure, effective January 1, 2016, includes the DA of 125 per cent sanctioned from that date in the pre-revised pay structure.

Thus, DA in the revised pay structure is zero from January 1, 2016.

The ministry further said till a final decision on allowances is taken based on recommendations of the committee constituted under the chairmanship of the finance secretary and the expenditure secretary, “all allowances will continue to be paid at existing rates”.

The DA will continue to be a distinct element of remuneration…, it added.

The ministry further said the orders will also apply to the civilian employees paid from 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, it said.

PTI

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Recommendations of the Seventh Central Pay Commission – Decision of Government relating to grant of Dearness Allowance to Central Government employees – Rates effective from 01.07.2016

No.1/2.2016-E-II
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the 4th November, 2016

OFFICE MEMORANDUM

Subject: Recommendations of the Seventh Central Pay Commission – Decision of Government relating to grant of Dearness Allowance to Central Government employees – Rates effective from 1.7.2016.

The undersigned is directed to say that consequent upon decision taken by the Government on the recommendations of the Seventh Central Pay Commission relating to Dearness Allowance, the President is pleased decide that the Dearness Allowance (DA) to all categories of Central Government employees shall be admissible at rate of 2 percent of basic pay per month, w.e.f.01.07.2016.

2. The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016.

3. The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix but does not include any other type of pay like special pay. etc.

4.  The Government vide Resolution No.1-2/2016-IC, dated 25/07/2016 has decided that till a final decision Allowances is taken based on the recommendations of the Committee constituted under the Chairmanship of Finance Secretary & Secretary (Expenditure), all Allowances will continue to be paid at existing rates.

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

6.  The payment on account or 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.

7. 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 ard Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Raiways, respectively.

8. In so far as the employees working in the ‘Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.

sd/-
(Annie George Mathew)
Joint Secretary to the Government of India

Click to view the order

Authority: www.finmin.nic.in

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