DA Hike: Cabinet Approves 3% Hike In Dearness Allowance For Central Govt Employees Ahead Of Diwali

2025-10-01 06:13:53

(MENAFN- Live Mint) DA hike for government employees: The Union Cabinet led by Prime Minister Narendra Modi on Wednesday, October 1, has approved a 3% increase in dearness allowance (DA) for central government employees ahead of Diwali.

“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 Cabinet said in a statement issued on Wednesday.

The dearness allowance hike is based on the recommendations of the 7th Central Pay Commission.

DA hike

The total annual impact on the exchequer due to the increase in both dearness allowance and dearness relief will be nearly ₹10,084 crore. The proposed hike is expected to benefit nearly 49.19 lakh central government employees and 68.72 lakh pensioners, the Cabinet said.

What is Dearness Allowance?

Dearness Allowance (DA) is a percentage of employees' basic salary designed to help mitigate the effects of inflation on their living expenses. This allowance is typically revised every six months to reflect fluctuations in the cost of living index.

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