Union Cabinet Boosts Government Employees' Allowances by 3%

The Union Cabinet has approved a 3% increase in Dearness Allowance and Dearness Relief for central government employees and pensioners, impacting 49.19 lakh employees and 68.72 lakh pensioners. This revision, effective from July 1, 2025, will have a financial implication of Rs 10,083.96 crore annually.

The Union Cabinet announced a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, benefiting around 49.19 lakh employees and 68.72 lakh pensioners.

This adjustment, which takes effect from July 1, 2025, is aimed at mitigating the impact of inflation on salaries and pensions.

According to I&B Minister Ashwini Vaishnaw, the financial burden on the exchequer due to this hike will amount to Rs 10,083.96 crore annually, following the 7th Central Pay Commission's recommendations.

(With inputs from agencies.)