Govt Announces 3% DA Hike For Employees & Pensioners, To Be Effective From July 2025

“Congratulations to all our central employees and pensioners,” said Union minister Ashwini Vaishnaw at the cabinet media briefing. “Besides, whatever happens after the increase by the central government, the employees of the state governments also get its direct benefit.”

The hike comes in line with the formula recommended by the 7th Central Pay Commission (7CPC), which is designed to help employees and pensioners maintain their purchasing power, and ease the burden of inflation.

The government has estimated that the combined financial impact of this increase will be around ₹10,084 crore per year. This benefit will reach approximately 1.17 crore people - including 49.19 lakh Central Government employees and 68.72 lakh pensioners.