Cabinet raises Dearness Allowance and Dearness Relief by 2% to 55% from 1 January 2025
The Union Cabinet approved a 2% increase in Dearness Allowance and Dearness Relief for Central Government employees and pensioners on 28 March 2025, taking it from 53% to 55% of basic pay or pension from 1 January 2025.
Summary
The Union Cabinet approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners on 28 March 2025, effective 1 January 2025. The 2% increase over the existing 53% of basic pay or pension compensates for price rise. The combined cost of DA and DR will be ₹6,614.04 crore a year, benefiting about 48.66 lakh employees and 66.55 lakh pensioners. The increase follows the accepted formula based on the 7th Central Pay Commission's recommendations.
Key facts
- Approved
- 28 March 2025
- Effective
- 1 January 2025
- Increase
- 2%, from 53% to 55%
- Annual cost
- ₹6,614.04 crore
- Employees
- About 48.66 lakh
- Pensioners
- About 66.55 lakh
Practice MCQs 2 questions
After the hike approved on 28 March 2025, what is the Dearness Allowance rate for Central Government employees from 1 January 2025?
Show answer
Correct answer: C — 55%
DA was raised by 2% from 53% to 55% of basic pay, effective 1 January 2025.
About how many pensioners benefit from the Dearness Relief increase approved on 28 March 2025?
Show answer
Correct answer: C — 66.55 lakh
About 66.55 lakh pensioners benefit; 48.66 lakh is the number of employees.