The Union Cabinet has given its nod to an increase of 3% in Dearness Allowance (DA) of the central government employees and similarly, a hike of 3% in Dearness Relief (DR) for pensioners. The increase will be applicable from 1st July 2025, thereby boosting the DA/DR from 55% to 58% of the basic pay or pension.
Who Will Be Affected & The Cost To The Government
This increment would cover about 49.19 lakh (4.92 million) central government employees and 68.72 lakh (6.87 million) pensioners. The additional cost to the government will be around ₹10,083.96 crore per year.
Reasons For Increase
This increase in DA is in accordance with the guidelines that were established under the seventh Central Pay Commission (7CPC). It is aimed at compensating for inflation and keeping the purchasing power of government employees and pensioners stable during the period of price rise.
Salary & Pensions Situation
The government has decided to raise the allowance by 3% which will increase a basic salary of ₹18,000 for a central government employee to ₹540 per month. A similar case would be with the pensioner, who will receive an extra ₹270 per month if they are already drawing a pension of ₹9,000 which is then DR of 58%. The amount due for the months of July, August, and September, 2025 would be included with the October salary or pension—just in time for the Diwali season.
Bi-annual Revision & Future Predictions
DA/DR for central government staff and retirees is frequently adjusted two times per year, in January and July, depending on inflation statistics. Though this latest increase falls under the 7th Pay Commission, priority talks are already going on regarding the 8th Pay Commission, which may have a bearing on the pay and allowances structure in the future.
Also Read :Post Office SCSS 2025: High Returns and Full Safety for Senior Citizens…