Cabinet approves additional instalment of three per cent Dearness Allowance to Central Government employees and Dearness Relief to Pensioners
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved to release an additional instalment of new Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f 01.07.2025 representing an DA increased of 3% over the existing rate of 55% of the Basic Pay/Pension, to compensate against price rise.
New Dearness Allowance would be Rs.10083.96 crore per annum
The combined impact on the exchequer on account of increase in both DA and Dearness Relief would be Rs.10083.96 crore per annum. This will benefit about 49.19 lakh Central Government employees and 68.72 lakh pensioners.
DA increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
