The Union Cabinet on Wednesday approved a 3 percent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, in a move that will put extra money in people’s pockets just before Dussehra and Diwali.

With this revision, DA has been increased from 55 percent to 58 percent of basic pay and pension. The hike takes effect retrospectively from July 1, 2025, ensuring that arrears for July, August, and September are credited along with the October salary, a timely festive bonus for millions.

What the hike means in numbers

For a government employee earning a basic pay of Rs 30,000, the hike translates into Rs 900 extra per month. Someone with a basic pay of Rs 40,000 will see an increase of Rs 1,200 monthly. Over three months, arrears will range be

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