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Cabinet Approves 3% DA, DR Hike to 58% Effective July 1

The retroactive move under the 7th Pay Commission’s CPI-IW formula will deliver July–September arrears with October salaries.

Overview

  • The increase covers about 49.19 lakh central government employees and 68.72 lakh pensioners.
  • The government estimates the annual fiscal impact at roughly Rs 10,084 crore.
  • Arrears for July, August, and September will be paid with the October payroll ahead of the festive season.
  • This is the second DA/DR increase in 2025 after a 2% raise effective January 1 that took the rate to 55%.
  • The official release confirms a July 1 effective date, clarifying isolated reports that cited October 1.