New Delhi: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) and Dearness Relief (DR) to Central Government employees and pensioners.
The DA and DR hike are effective from 01 July 2025 representing an increase of 3% over the existing rate of 55% of the Basic Pay/Pension, to compensate against price rise, said a Cabinet note.
Minimum DA Rises To Rs 10,440/Month
With the latest DA hike of 3 percent, the minimum basic salary of Level-1 employees which is @ Rs 18,000, will be higher by Rs 10,440 per month.
DA Hike Calculation Level-1 (Minimum Salary)
DA Hike= 3%
Current DA= 58
Monthly Basic Salary= Rs 18,000
Effective Hike Per Month (58% of Rs 18,000)= Rs 10,440Â
Minimum DR Rises To Rs 5,220/Month
DR Hike= 3%
Current DR= 58
Monthly Basic Salary= Rs 9,000
Effective Hike Per Month (58% of Rs 9,000)= Rs 5,220
DA DR Hik: 3 Months Arrears Clubbed
Central government employees and pensioners will get DA and DR arrears from 1 July 2025. With arrears in October month’s salary, the arrears for Level-1 employees will be Rs 1,620.
DA DR Hike Combined Impact On The Exchequer
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs.10083.96 crore per annum. This will benefit about 49.19 lakh Central Government employees and 68.72 lakh pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.