Union Cabinet approves 2% hike in Dearness Allowance for employees and pensioners

Union Cabinet on Friday (March 28, 2025) announces a 2% hike in the Dearness Allowance for employees and pensioners. This was announced by the Union Minister Ashwini Vaishnaw.

With this rise the DA and DR will be increased from 53% to 55% with effect from January 1, 2025. The rise in DA and DR will have an impact on the exchequer will be ₹7,716 crore.

The increase will benefit 48.66 lakh Central Government employees and 66.55 lakhs pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.