Festive Relief
Cabinet hikes dearness allowance to 58% from 55% for central govt staff
This story was originally published at 15:27 IST on 1 October 2025
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--Cabinet OKs hike in dearness allowance for govt employees
--Cabinet hikes dearness allowance to 58% of basic pay for govt employees
--Govt: Hike in dearness allowance to cost INR 100.84 bln to govt exchequer
NEW DELHI – The Union Cabinet Wednesday approved a 300 basis-point increase in dearness allowance and dearness relief to 58% of basic pay and pension, respectively, for central government employees and pensioners, effective Jan. 1. The increase will cost the exchequer INR 100.84 billion per annum, Information and Broadcasting Minister Ashwini Vaishnaw said at a press conference.
The move is set to benefit 4.92 million employees and 6.87 million pensioners, the government said in a press release. "This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission."
The government typically hikes the dearness allowance twice a year. In March, it had raised the dearness allowance and dearness relief by 200 bps to 55% of basic pay and pension. End
Reported by Priyasmita Dutta
Edited by Rajeev Pai
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