The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional 3% hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.

This increase comes as a timely Diwali gift, aimed at helping employees and pensioners cope with rising prices.

The revision, effective from July 1, 2025, takes the DA rate from 55% to 58% of basic pay and pension. The move comes as part of the government’s effort to cushion its employees and pensioners against the rising cost of living.

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This marks the second increase in DA this year. In March 2025, the Cabinet announced a 2% hike, raising the payout from 53% to 55% of basic pay. Before that, a 3% hike was implemented in October 2024.

DA Is Revised Biann

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