Cabinet Approves 2% Hike in DA for Government Employees
On March 28, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners. This hike, effective from January 1, 2025, raises the DA from 53% to 55% of Basic Pay/Pension, benefiting approximately 48.66 lakh employees and 66.55 lakh pensioners. The revision follows the established formula based on the 7th Central Pay Commission’s recommendations and aims to counter inflationary pressures.
| Summary/Static | Details |
| Why in the news? | Cabinet Approves 2% Hike in DA for Government Employees |
| Approval Date | March 28, 2025 |
| Effective Date | January 1, 2025 |
| DA Increase | 2% (from 53% to 55%) |
| Beneficiaries | 48.66 lakh employees, 66.55 lakh pensioners |
| Financial Impact | ₹6,614.04 crore per annum |
| Last Increase | July 2024 (from 50% to 53%) |
| Basis for Revision | 7th Central Pay Commission, AICPI-IW |
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