Good news for Central govt employees: 3% DA hike to benefit lakhs of employees & pensioners

New Delhi(The Uttam Hindu): Just before the festive season of Dussehra and Diwali, the Modi government at the center has given a major gift to more than 10 million government employees and pensioners. A 3% increase in dearness allowance (DA) was approved at a cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday. Following this decision, central government employees will now receive an increased salary each month.

With this increase, the dearness allowance of central government employees and pensioners has increased from 55% to 58%. The government implemented this increase from July 1, 2025, which means employees will also receive arrears for the three months of July, August, and September. This money is expected to be credited to accounts in one lump sum before Diwali, doubling the festive spirit. This decision will directly benefit 49.2 lakh central government employees and 68.7 lakh pensioners.

It's worth noting that in March, the dearness allowance was increased by only 2%, the lowest in seven years. This caused some disappointment among employees. Typically, DA increases range from 3% to 4%, so this time, the 3% increase has fulfilled employees' expectations.

The government revises dearness allowance (DA) every six months to provide relief to its employees and pensioners from rising inflation and maintain their standard of living. It is calculated based on the All India Consumer Price Index (AICPI).