Credit: Kamlesh Makwana
The government has hiked the dearness allowance (DA) for central government employees and pensioners by 3% to 58%. This decision was taken in the cabinet meeting held on Wednesday, October 01, 2025, chaired by Prime Minister Naendra Modi.
Now, the DA for employees will increase from 55% to 58%. This increase will be effective from July 1, 2025. 49.2 lakh central government employees and 68.7 lakh pensioners will benefit from this.
DA Increased by 2% Six Months Ago
In March, the allowance was increased by 2%. At that time, it was the lowest increase in seven years. Usually, the increase in DA is between 3% and 4%, but at that time the increase was only 2%.
DA is Given to Deal with Inflation
Because of rising inflation, the DA is given to government employees an