In a major relief for government staff and retirees, the Union Cabinet on Wednesday approved a 3 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR). The decision will benefit nearly 49.19 lakh central government employees and 68.72 lakh pensioners across the country.
The hike, effective from July 1, 2025, raises the DA/DR from the existing 55 per cent to 58 per cent of the basic pay or pension. The revision aims to offset the impact of inflation on salaries and pensions.
Briefing the media on the Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the move would put an additional burden of ₹10,083.96 crore per year on the exchequer.
The increase has been made as per the formula recommended by the 7th Central Pay Commission, which governs periodic revisions of DA and DR to protect government staff and pensioners against rising prices.(KINS)
