Good news for central government employees and pensioners! The Union Government has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR). With this revision, DA/DR has gone up from 55% to 58%, effective from 1 July 2025.
What is DA/DR?
Dearness Allowance (DA): Given to serving central government employees to compensate for inflation.
Dearness Relief (DR): Paid to pensioners as compensation against rising cost of living.
Both DA and DR are revised twice a year—January and July—but the announcement often comes later.
Impact of the 3% Hike
Employees will now receive 58% of basic pay as DA.
Pensioners will also get the same 58% Dearness Relief (DR).
This hike will benefit more than 47 lakh central government employees and over 68 lakh pensioners.
For example, an employee with a basic pay of ₹50,000 will now receive:
Earlier DA @ 55% = ₹27,500
New DA @ 58% = ₹29,000
Net increase = ₹1,500 per month
Arrears & Salary Impact
The hike is effective from 1 July 2025.
Employees and pensioners will receive arrears for July to October 2025 along with the October salary/pension.
This means the festive season will bring an additional lump-sum benefit.
Why the Hike?
DA/DR revisions are based on the All-India Consumer Price Index (AICPI). With inflationary pressures rising, the index justified a 3% increase this time.
Bottom Line
The DA hike to 58% from July 2025 brings significant relief to employees and pensioners, helping them cope with rising living costs. The arrears from July to October will provide an extra boost just ahead of the festive season.