Centre Approves 3 Per Cent DA, DR Hike for Employees, Pensioners

The Indian government has approved a three per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, effective retrospectively from July 1, 2025. The move, timed as a Dussehra and Diwali festive gift, raises DA rates from 55 per cent to 58 per cent of basic pay and pension, and will benefit around 48 lakh employees and 68 lakh pensioners. Arrears for July, August and September will be credited with the October salary, providing timely financial relief during the festival season.

This increase is the second DA revision this year, following a two per cent hike in March. Adjustments to DA and DR are made biannually to cushion employees from inflation, based on the Consumer Price Index for Industrial Workers. For those drawing a basic pay of Rs 18,000, the revision adds Rs 540 per month; for pensioners on Rs 9,000 minimum pension, it brings an extra Rs 270 monthly.

The government has indicated this may be the final DA/DR adjustment under the Seventh Pay Commission, with the Eighth Pay Commission set to be implemented from January 2026. (Agencies)