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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