DA Hike for Central Government Employees: Dearness Allowance Raised to 58% from 1st July 2025
In a move that brings relief and happiness to lakhs of Central Government employees, the Ministry of Finance, Department of Expenditure, has officially announced a revision in Dearness Allowance (DA) rates.
According to the Office Memorandum No. 1/4(1)/2025-E.II(B) dated 06 October 2025, the Dearness Allowance payable to Central Government employees has been increased from 55% to 58% of the Basic Pay, effective from 1st July 2025.
Official Announcement Details
The Office Memorandum, issued by Samir Kumar Das, Deputy Secretary to the Government of India, confirms that the President has approved this enhancement.
The decision follows the pattern of DA revisions based on changes in the All India Consumer Price Index (AICPI), which tracks inflation levels.
Here are the key highlights from the notification:
- Revised Rate: Dearness Allowance increased from 55% to 58%.
- Effective Date: 1st July 2025.
- Applicable To: All Central Government employees.
- Payment Details: Fractions of 50 paise and above will be rounded off to the next higher rupee.
- Separate Orders: To be issued for Defence and Railway employees by their respective ministries.
- Consultation: Issued after consultation with the Comptroller and Auditor General of India (C&AG).
Understanding Dearness Allowance
The Dearness Allowance (DA) is a cost-of-living adjustment paid to government employees to help them cope with inflation.
It is calculated as a percentage of an employee’s Basic Pay and is revised twice a year — January and July — based on the rise or fall in AICPI.
This allowance ensures that employees’ real income remains stable despite price fluctuations in essential goods and services.
For example, if an employee’s Basic Pay is ₹50,000, the DA at 58% will now amount to ₹29,000 per month, compared to ₹27,500 earlier — an increase of ₹1,500 monthly.
Impact on Central Government Employees
This 3% hike in DA will directly boost the take-home pay of around 47 lakh Central Government employees and 68 lakh pensioners.
It also positively affects pensioners’ Dearness Relief (DR), which is revised in the same proportion as DA.
The decision comes just months before the expected discussions around the 8th Central Pay Commission, adding to the optimism among government employees for further pay structure improvements in the near future.
Human Angle – A Welcome Festive Boost
With festivals like Diwali approaching, this DA increase feels like a much-needed gift from the government to its employees.
For many families, the additional amount will help cover rising household expenses and bring some financial comfort amid ongoing inflation.
It also reaffirms the government’s commitment to supporting its workforce through periodic pay adjustments.
Conclusion
The enhancement of Dearness Allowance from 55% to 58% marks another step in the government’s continued effort to safeguard its employees from inflationary pressures.
Central Government employees and pensioners can expect to receive the revised DA/DR from their October 2025 salary, including arrears for July to September 2025.
GovtJobPerks.com congratulates all Central Government employees and pensioners on this positive update.
📎 Official Source:
The official Office Memorandum issued by the Department of Expenditure, Ministry of Finance on 06 October 2025 is attached below for reference.
