NEW DELHI, MAY 07, 2025: The Union Cabinet has approved four percent increase in Dearness Allowance for Central government employees under the seventh pay commission on Wednesday.
The Union cabinet which met under the chairmanship of Prime Minister Narendra Modi. The cabinet meeting said that the increased DA will be implemented from January 1, 2024. The Union Cabinet also approved to release an additional instalment of Dearness Allowance to Central government and Dearness Relief (DR) to pensioners with effect from January 1, 2024 representing an increase of four per cent over the existing rate of 46 percent of the basic pay/pension, to compensate against price rice, the government said.
The combined impact on the exchequer on account of both DA and DR is amount t6o Rs 12,868.72 crore per annum. This will benefit about 49.18 lakh central government employeese and 67.95 lakh pensioners.
