New Delhi: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a 3 per cent increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2025.

This raises the existing rate from 55 per cent to 58 per cent of the basic pay or pension, according to a release by the Cabinet.

The hike, aimed at offsetting the impact of inflation, will benefit approximately 49.19 lakh Central Government employees and 68.72 lakh pensioners. Show Full Article

The total financial implication of this decision on the exchequer is estimated at Rs 10,083.96 crore annually.

The revision follows the formula based on the recommendations of the 7th Central Pay Commission.

In other decisions, the cabinet approved the ‘Mi

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