Centre to hike 4% DA for central government employees in July

The Centre is likely to hike 4% Dearness Allowance (DA) of central government employees from July 2025, as per reports.

If confirmed, the central government employees will get 59% DA from the current 55%.

According to reports, the official announcement is yet to be made and is expected to be made in August or closer to the festive season in September or October.

Notably, in March 2025, the Union Cabinet approved a 2% increase in DA to central government employees and Dearness Relief (DR) to pensioners with effect from January 1.

The move had benefited about 48.66 lakh central government employees and 66.55 lakh pensioners, according to the official statement.

The combined DA and DR impact on the exchequer was ₹6614.04 crore per annum.

DA and DR are announced biannually, with one of them usually announced in March, while the other in October ahead of Diwali.

The government has also set up the 8th Pay Commission, which was approved by the Centre in January this year, to revise the wages and allowances of central government employees.

The formal constitution of the commission, which involves the appointment of a chairman and at least two members, is expected soon.

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Cabinet likely to approve hike in DA for Central govt staff this week