The Central Government on Wednesday, October 1, announced a festive boost for its employees and pensioners ahead of Diwali 2025, approving a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR). With this revision, the DA rate will rise from 55% to 58% of the basic pay and pension, effective from July 1, 2025. The decision, taken by the Union Cabinet chaired by Prime Minister Narendra Modi, will benefit nearly 49.19 lakh Central Government employees and 68.72 lakh pensioners. The move is expected to cost the exchequer Rs 10,083.96 crore annually. This increment, in line with the recommendations of the 7th Central Pay Commission, comes as a measure to offset inflationary pressures. 7th Pay Commission: Union Cabinet Likely to Approve 3% DA, DR Hike for Central Government Employees and Pensioners Today, Says Report.

Central Government Hikes Dearness Allowance by 3% Under 7th Pay Commission

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