India, Oct. 1 -- The central government on Wednesday greenlit a 3 per cent increase in the dearness allowance for its employees, bringing the DA to 58 per cent.

The move, which comes ahead of Dussehra and Diwali festivals, is the second time the DA has been hiked for central government employees in 2025. It was last revised in March, when the employees saw a 2 per cent hike in the allowance.

The move will benefit 49.2 lakh employees and 68.7 lakh pensioners of the central government. State government usually follow suit. It will add a financial implication of Rs.10,084 crore per year.

The pay change will be effective from July 1, 2025

The DA for central government employees is calculated based on the latest Consumer Price Index for In...