3 percent increase in dearness allowance of central employees
Da Hike: Just before the festival of Diwali, the central government has given a great news to central employees and pensioners. The Union Cabinet has approved a 3 percent increase in dearness allowance (DA). With this increase, now the total DA rate has increased from 55 percent to 58 percent. This decision will benefit about 1.15 crore central government employees and pensioners. This increase will be considered effective from 1 July 2025, that is, from July to September, the increased DA will be available with the salary of October.
#Watch Union Minister Ashwini Vaishnaw Says, “The Union Government has approved an increase in dearness allowance and dearness relieve by 3%, Effective From July 1.” pic.twitter.com/QVSO4A9IXR
– ANI (@ani) October 1, 2025
What does it mean to increase dearness allowance?
Dearness allowance is an important part of salary and pension which provides relief in the income of employees and pensioners according to the rising rate of inflation. The central government amends DA twice a year in January and July so that the standard of living of the employees remains despite the increase of expenses. This decision of this time is being considered a big gift, especially in view of the festive season, because the pressure of inflation increases on the budget of the houses. The government also increased by 2 percent in March 2025, due to which DA increased from 53 to 55 percent. Now this rate has reached 58 percent. This increase has been done on the basis of the recommendations of the Seventh Central Pay Commission.
Old allowance will be available in October salary
This decision of the central government will be affected from 1 July 2025, but it will be paid with a salary of October 2025. This means that the additional DA employees and pensioners of three months of July, August and September will get together in the salary of October. About 48 lakh central employees and 68 lakh pensioners are eligible for this benefit. Experts say that this increase in dearness allowance is an important step to protect employees and pensioners from the increasing pressure of inflation. This decision of the government will not only give financial relief, but will also help in socio-economic stability on the occasion of festivals.
How much salary will increase?
At present, central employees are getting 55% dearness allowance (DA). Now it has been approved by an increase of about 3%, which will increase the DA to 58%. This increase will be considered applicable from 1 July 2025. This means that now 58% of their basic salary will be given to the employees as dearness allowance. Suppose an employee has a basic salary of ₹ 60,000, then at the moment he gets ₹ 33,000 under 55% DA as dearness allowance. After this increase of 3%, he will get ₹ 34,800 as dearness allowance. That is, his monthly gross salary will increase by ₹ 1,800.