- By Aditya Jha
- Wed, 01 Oct 2025 03:17 PM (IST)
- Source:JND
7th Pay Commission DA Hike: The central government on Wednesday announced a 3 per cent hike in Dearness Allowance (DA) for all the government employees and pensioners. The announcement has been made during the festival season, providing a major relief to the government employees. While announcing the hike, Union Minister Ashwini Vaishnaw stated that the changes will be effective from July 1. "The Union Government has approved an increase in Dearness Allowance and Dearness Relief by 3%, effective from July 1," Vaishnaw stated.
#WATCH | Union Minister Ashwini Vaishnaw says, "The Union Government has approved an increase in Dearness Allowance and Dearness Relief by 3%, effective from July 1." pic.twitter.com/qvsO4a9IxR
— ANI (@ANI) October 1, 2025
“The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024, representing an increase of three per cent (3 per cent) over the existing rate of 50 per cent of the Basic Pay/Pension, to compensate against price rise,” a government release stated.
The changes will be applied from July 1, 2025, meaning that arrears for the previous three months will be credited with October salaries. The hike will provide relief to approximately 4.8 million employees and 6.8 million pensioners. Earlier in March, the government increased DA and DR by 2 per cent, making it 55 per cent of basic pay and pension, effective January 1, 2025.
While providing details, the centre stated that the changes were approved according to a formula determined based on the recommendations of the Seventh Central Pay Commission. Dearness allowances and dearness relief are provided to employees and pensioners to protect them from inflation and adjust their cost of living.