The Union Cabinet on Wednesday approved a 3 per cent hike in Dearness Allowance (DA) for central government employees and pensioners. The hike in DA comes ahead of festivals such as Dussehra and Diwali.

With this, the rate went up from 55 per cent to 58 per cent of basic pay and pension. The hike will take effect retrospectively from July 1, 2025. Arrears for July, August, and September will be paid along with the October salary, just before Diwali. Advertisement

The increase covers all Central government employees under the 7th Pay Commission, as well as pensioners and family pensioners. For instance, an employee with a basic salary of ₹30,000 will receive an additional ₹900 per month, while someone earning ₹40,000 will get ₹1,200 more. Over three months, the arrears will total ₹2,700

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