Story highlights

Union cabinet sanctioned a 3% DA hike for central government employees

Nearly one crore employees and pensioners will benefit from the increase

Revised allowance effective retrospectively from 1 July 2025

The Union Cabinet on Wednesday, October 1 cleared a 3 per cent hike in Dearness Allowance (DA) for central government employees and pensioners, a move that will benefit nearly one crore individuals across the country.

The revised allowance, which serves as a cost-of-living adjustment to offset inflation, will be effective from July 1, 2025. Dearness Allowance is revised twice a year—typically in January and July—based on changes in the Consumer Price Index (CPI) for industrial workers, which reflects inflation trends.

The latest revision is expected to provide finan

See Full Page