3% hike in DA and DR for central employees and pensioners approved by Union Cabinet

STC NEWS DESK
SRINAGAR, OCTOBER 02 (STC): The Union Cabinet today approved a 3 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. The decision will benefit nearly 49.19 lakh 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.
(Straight Talk Communications)