Railway Employees Get 3% DA Hike from July 2025: Railway Board Issues Order
Date: October 16, 2025
Source: Ministry of Railways, Railway Board
Letter No.: RBE No. 108/2025 | PC-VII No. 230
File No.: PC-VII/2016/I/7/2/1
Big Relief for Railway Employees as DA Hiked to 58%
The Ministry of Railways has officially announced a 3% increase in Dearness Allowance (DA) for all Railway employees, effective from 1st July 2025. With this revision, the DA rate has gone up from 55% to 58% of the basic pay under the 7th Central Pay Commission (CPC) pay structure.
This decision, issued through Railway Board’s letter dated 16 October 2025, brings a wave of happiness among Railway employees across India. The DA hike aims to offset the impact of inflation and ensure that employees’ real income keeps pace with rising living costs.
What the Official Order Says
According to the official communication signed by Jaya Kumar G., Joint Director, Pay Commission & HRMS, Railway Board, the enhanced DA will be applicable to all categories of Railway employees.
The letter clearly mentions:
“The President is pleased to decide that the Dearness Allowance payable to Railway employees shall be enhanced from the existing rate of 55% to 58% of the Basic Pay with effect from 1st July, 2025.”
The order also clarifies that Basic Pay refers only to the pay drawn in the prescribed level in the Pay Matrix as per the 7th CPC and does not include any other pay such as special pay or allowances.
Key Points from the Circular
- Effective Date: 1st July 2025
- Previous Rate: 55% of Basic Pay
- Revised Rate: 58% of Basic Pay
- Applicable To: All Railway employees under 7th CPC pay structure
- Rounding Rule: Amounts with fractions of ₹0.50 and above to be rounded to the next rupee
The letter also reaffirms that the Dearness Allowance remains a separate component of salary and will not be treated as part of “pay” under the relevant Railway Establishment Code rules.
A Welcome Move Before Festive Season
The timing of this DA hike could not have been better. With the festive season around the corner, this decision will bring much-needed financial relief and positivity among Railway employees and their families.
For many employees, this hike means slightly higher take-home pay from the next salary cycle. It also reflects the government’s commitment to support its workforce in times of increasing inflation and economic uncertainty.
Download the Official DA Order
Employees can read and download the official Railway Board letter here:
📄 Download DA Hike Order (PDF)
Bottom Line
The latest Dearness Allowance hike to 58% is a small but meaningful boost for more than 12 lakh Railway employees across India. Such periodic revisions play a vital role in maintaining the morale and financial stability of government employees.
With this increase effective from 1st July 2025, employees can expect arrears to be paid soon. GovtJobPerks.com congratulates all Railway employees on this positive update!