3 percent DA hike for Central Govt employees and pensioners approved by Cabinet

New Delhi, Oct. 1 -- The union Cabinet chaired by Prime Minister Narendra Modi today approved release of an additional instalment of three per cent Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from July.

''The union Cabinet has approved the release of an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from 01.07.2025. This represented an increase of three percent over the existing rate of 55 percent of the basic pay and pension, to compensate against price rise,'' union Minister Ashwini Vaishnaw said.

The combined impact on the exchequer on account of increase in both DA and DR would be Rs.10083.96 crore...