Delhi, 1 October (H.S.): In a major relief to government staff and retirees, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners at a rate of 3 percent, effective from July 1, 2025.With this hike, the DA and DR have increased from the existing 55 percent to 58 percent of the basic pay and pension.

The move, aimed at offsetting inflation and rising costs, will benefit over 1.17 crore individuals—comprising approximately 49.19 lakh serving employees and 68.72 lakh pensioners.

Financial Impact

The combined financial burden on the national exchequer due to the latest increase is estimated at ₹10,083.96 crore per annum. The revision follows the well-established formula recommended by the 7th Central Pay Commission, which links allowances to the Consumer Price Index to ensure employees are shielded from inflationary pressures.

Strengthening Social Security Net

Officials noted that this regular revision of DA and DR underscores the government’s commitment to supporting its workforce and retired personnel. Since dearness allowances serve as a buffer against price escalations, the increment is expected to bring significant relief to lakhs of families dependent on government pay and pensions.

The latest increase comes under the broader ambit of social welfare measures announced as part of the government’s efforts during Azadi Ka Amrit Mahotsav, reflecting its focus on ensuring economic security for both working and retired officials who have contributed to public service.

Hindusthan Samachar / Jun Sarkar