DA Allowance: Cabinet approves DA hike for central govt employees and pensioners, say sources

Just ahead of Diwali, the government has announced a hike in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners across India, sources said. According to the information available, the revised allowances will be effective from July 1, 2025. The decision is expected to benefit approximately 1.15 crore central government employees and pensioners. 

It must be noted that the DA and DR are very important components of salaries and pensions. As government revises these allowances twice a year - in January and July, these government employees have been waiting with anticipation since July.

When Was DA Hiked Last?

The government had previously increased dearness allowance (DA) and dearness relief (DR) by 2 per cent, effective January 1, 2025. Following this increase, dearness allowance had increased from 53 per cent to 55 per cent of basic salary.

These hike were approved according to a formula established based on the recommendations of the 7th Central Pay Commission. Dearness allowances and dearness relief are provided to employees and pensioners to protect them from inflation and adjust their cost of living.