Diwali Delight: DA and DR Hike for Government Employees

The Union Cabinet has delivered a festive Diwali gift to central government employees and pensioners by approving a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR). The decision envisions an annual outlay of Rs 10,083.96 crore.

The raise coincides with recent efforts to rationalize GST rates, reducing prices on everyday items such as ghee, paneer, and aspirational goods including TVs and washing machines. The new DA/DR rate, effective from July 1, 2025, rises to 58% to counteract inflation.

This adjustment will positively impact around 49.19 lakh employees and 68.72 lakh pensioners, said I&B Minister Ashwini Vaishnaw. It follows prior revisions that occur twice yearly, reflecting recommendations from the 7th Central Pay Commission. Last month, the Cabinet also approved a bonus for railway workers.

(With inputs from agencies.)