Union Cabinet Hikes Dearness Allowance to 58%, Benefiting Over 1.17 Crore Individuals
New Delhi: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, today approved the release of an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.
The increase amounts to 3% over the existing rate of 55% of the Basic Pay/Pension, raising the new rate to 58%. The hike is effective retrospectively from July 01, 2025, and is intended to compensate against price rise.
This increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
The move will benefit approximately 49.19 lakh Central Government employees and 68.72 lakh pensioners, totaling over 1.17 crore individuals. The combined impact on the exchequer due to the increase in both DA and DR is estimated to be ₹10,083.96 crore per annum.
