Cabinet approves 3 per cent DA and DR hike for central staff, pensioners

The Union Cabinet on Wednesday approved a 3 per cent hike in Dearness Allowance and Dearness Relief for 49.19 lakh central government employees and 68.72 lakh pensioners. Effective from July 1, 2025, the hike will cost Rs 10,083.96 crore annually

New Delhi: The Union Cabinet on Wednesday increased Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent for about 49.19 lakh central government employees and 68.72 lakh pensioners.

The DA and DR hike of 3 per cent over the existing rate of 55 per cent of the basic pay and pension, to compensate against price rise, will be effective from July 1, 2025.

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The combined impact on the exchequer due to the increase in DA and DR will be Rs 10,083.96 crore per annum, I&B Minister Ashwini Vaishnaw said while briefing on decisions taken in the Cabinet meeting.

The increase is in line with the accepted formula based on the recommendations of the 7th Central Pay Commission.