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1h ago

Cabinet Approves 3% DA and DR Hike to 58% for Central Staff and Pensioners

Arrears for July–September will be paid with October salaries as the CPI‑IW‑linked revision adds about Rs 10,084 crore to the annual bill.

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DA Hike
DA Hike
Dearness allowance is given to help government employees cope up with inflation.

Overview

  • The increase takes effect from July 1, 2025, benefiting about 49.19 lakh central government employees and 68.72 lakh pensioners.
  • For those on the minimum basic pay of Rs 18,000, the change adds roughly Rs 540 per month; minimum pensioners at Rs 9,000 see about Rs 270 more.
  • This is the second DA/DR adjustment in 2025 after a 2% rise in March lifted the rate to 55%.
  • The hike follows the established 7th Central Pay Commission formula using CPI‑IW data, which guides twice‑yearly revisions in January and July.
  • With the 8th Pay Commission process announced but not yet formalized, this is expected to be the last scheduled update under the 7th CPC.