New Delhi: The Union Cabinet on Wednesday approved a 3 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) for around 49.19 lakh Central Government employees and 68.72 lakh pensioners. The hike, effective from July 1, 2025, raises the existing DA/DR from 55 per cent of basic pay and pension to help offset the impact of rising prices.
Information and Broadcasting Minister Ashwini Vaishnaw said the combined financial burden on the exchequer due to the increase will be approximately Rs 10,083.96 crore annually. He added that the hike has been implemented following the standard formula recommended by the 7th Central Pay Commission.
