Cabinet approves 3 per cent DA hike for Central government employees and pensioners

The Union Cabinet on Wednesday, October 1 cleared a 3 per cent hike in Dearness Allowance (DA) for central government employees and pensioners, a move that will benefit nearly one crore individuals across the country.

The revised allowance, which serves as a cost-of-living adjustment to offset inflation, will be effective from July 1, 2025. Dearness Allowance is revised twice a year—typically in January and July—based on changes in the Consumer Price Index (CPI) for industrial workers, which reflects inflation trends.

The latest revision is expected to provide financial relief to both serving employees and retired staff, especially in the face of rising household expenses. By aligning the hike with CPI data, the government aims to ensure that employees and pensioners are better equipped to manage the impact of price increases on essential goods and services.

This decision underscores the government’s continued commitment to safeguarding the financial well-being of its workforce and pensioners.