NE NEWS SERVICE
NEW DELHI, OCT 2
In a festive boost coinciding with Saraswati Puja, the Union Cabinet on Wednesday approved a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners.
The revision will benefit about 49.19 lakh employees and 68.72 lakh pensioners, raising the DA/DR rate from 55% to 58% of basic pay/pension. The hike will be effective from July 1, 2025.
Announcing the decision, Information & Broadcasting Minister Ashwini Vaishnaw said the move will cost the government ₹10,083.96 crore annually.
Price Rise Compensation
The revision aims to offset the impact of inflation on salaries and pensions. DA and DR hikes are calculated as per the formula recommended by the 7th Central Pay Commission (CPC), based on the Consumer Price Index (CPI).
Broader Impact
Officials noted that the measure will put additional disposable income into the hands of more than 1.17 crore beneficiaries, boosting consumption during the festive season and providing relief amid rising household expenses.
