The Union Cabinet is set to greenlight a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for Central government employees and pensioners, raising the rate from 55% to 58% of basic pay and pension.

The increase, India Today said citing sources, will be implemented with retrospective effect from July 1, 2025, and arrears for July, August, and September are expected to be disbursed with the October salary—just ahead of Diwali.

The hike applies to all Central government employees governed by the 7th Pay Commission, as well as retired pensioners and family pensioners. In terms of impact, this means a person earning a basic salary of ₹30,000 will get an additional ₹900 per month, while someone with ₹40,000 basic pay will see ₹1,200 more each month. Over three months, that’s ₹2,700

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