Union Minister G Kishan Reddy on Wednesday announced that the Union Cabinet has approved an
additional instalment of Dearness Allowance (DA) for central government employees and pensioners,
effective July 1, 2025.
Calling it a “festive gift”, Reddy said,
Under the visionary leadership of Hon’ble PM Shri Narendra Modi ji, the NDA Government reaffirms its strong commitment
to the welfare of Union Government employees and pensioners.
Festive Relief
The minister highlighted that ahead of the festive season, the government had already reduced GST on
99% of goods by revising slabs, and the DA increase comes as an added relief for families.
He said, Now, on the eve of the auspicious Dusshera festival and the upcoming festive season, the Cabinet has
approved the release of additional instalment of DA to Central Govt. employees and pensioners w.e.f. 01.07.2025
with a financial implication of Rs 10,084 crore annually.
Financial Impact
- Annual financial implication: Rs 10,084 crore
- Beneficiaries: Lakhs of central government employees and pensioners
- New DA rate: Enhanced to 58% of basic pay
- Hike for 6th CPC employees/retirees: 5%
- Hike for 5th CPC employees/retirees: 8%
Key Takeaway:
The DA hike of 3% for current CPC scales, and higher hikes for earlier CPC pay scales, comes as a
major festive relief, boosting incomes and purchasing power of government staff and retirees.
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