Central Govt employees, pensioners to get 2% DA, DR hike from Jan 2025

New Delhi, Mar 28: The Union Cabinet chaired by Prime Minister Narendra Modi Friday approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2025, representing an increase of 2 percent over the existing rate of 53 percent of the basic pay and pension, to compensate against price rise.

The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs 6614.04 crore per annum.

This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.

This increase is following the accepted formula based on the recommendations of the 7th Central Pay Commission.