Cabinet Approves 3% Increase in Dearness Allowance for Government Employees
The Union Cabinet, led by Prime Minister Narendra Modi, has approved a 3% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2025. This increase raises the DA from 55% to 58% of the Basic Pay/Pension, aiming to offset the impact of price rises. The financial burden on the exchequer is estimated at Rs. 10,083.96 crore annually, benefiting approximately 49.19 lakh employees and 68.72 lakh pensioners, in line with the 7th Central Pay Commission's recommendations.
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