The Union Cabinet is set to approve the dearness allowance (DA) hike for central government employees and pensioners for the July-September 2025 period, according to multiple reports. The big decision is being taken ahead of Diwali, following the government’s usual practice of announcing the second tranche of DA increases before major festivals. The DA hike is announced twice a year – for the January-June cycle before Holi and the July-December cycle before Diwali.

How much would be DA hike for July-Sep 2025

The DA/DR hike is expected to be around 3%, which would raise the total dearness allowance to 58% of basic pay. For comparison, the January-June 2025 revision saw only a 2% increase, taking DA from 53% to 55%. It was the smallest hike in percentage terms in over six years.

What

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