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India Approves 3% Dearness Allowance Hike for Government Employees and Pensioners
1 Oct, 2025
Summary
- 3% DA hike expected for government employees and pensioners
- Hike to be effective from July 1, 2025
- Second DA increase this year after 2% hike in March
In a move to support government employees and pensioners amid rising inflation, the Indian government is expected to approve a 3% increase in Dearness Allowance (DA) effective from July 1, 2025. This hike, once approved by the Union Cabinet, will be the second such increase this year, following a 2% rise in March.
The proposed 3% DA hike is intended to align with the movement of the Consumer Price Index (CPI) for industrial workers, which forms the basis for the bi-annual revisions of the Dearness Allowance. For an employee with a basic salary of ₹60,000, the additional DA payout will amount to ₹34,800, up from the previous ₹33,000 after the March increase.
The latest DA adjustment is seen as a measure to help offset the impact of inflation on the purchasing power of India's public sector workforce and retirees ahead of the upcoming festive season. Further revisions to salaries and allowances will be decided by the Eighth Pay Commission, which was announced in January 2025, though the official notification regarding its members and terms of reference is still awaited.
