India, Oct. 1 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 3% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2025. With this increase, the DA and DR will rise from 55% to 58% of the basic pay or pension.

"Congratulations to all our central employees and pensioners," said Union minister Ashwini Vaishnaw at the cabinet media briefing. "Besides, whatever happens after the increase by the central government, the employees of the state governments also get its direct benefit."

The hike comes in line with the formula recommended by the 7th Central Pay Commission (7CPC), which is designed to help employees and pensioners maint...