Central Government Boosts DA & DR to 58%, Employees & Pensioners to Gain Rs 8,528 in October
The central government has boosted the Dearness Allowance (DA) and Dearness Relief (DR) by 3%, from 55% to 58%. This increase, effective from July 1, 2025, will benefit over 1.2 crore employees and pensioners.
Level-1 employees, with a minimum basic salary of Rs 18,000, will now receive a total DA of Rs 10,440 per month. This includes an additional Rs 540 due to the 3% increase. The hike is set to improve their monthly income significantly.
The DA increase will also benefit pensioners. Those with a minimum basic salary of Rs 9,000 will see an additional Rs 270 in their monthly pension, bringing the total DR to Rs 5,220.
In addition to the DA hike, central government Group C and non-gazetted Group B employees will receive an 'ad-hoc bonus' of Rs 6,908 for the year 2024-25. This bonus, equivalent to 30 days' salary, will be paid in October, along with DA arrears of Rs 1,620, totalling Rs 8,528 for Level-1 employees.
The DA and DR increase, along with the ad-hoc bonus, will provide a significant financial boost to central government employees and pensioners. The benefits will be fully realised in October 2025, with the 8th Pay Commission expected to take effect from January 1, 2026, following the conclusion of the 7th Pay Commission's term.
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