Cabinet Approves 3% DA Hike for Central Govt Employees & Pensioners
The Union Cabinet is set to approve a dearness allowance (DA) hike for central government employees and pensioners for the July-September 2025 period. The increase, expected to be around 3%, will be the last under the 7th Pay Commission before it ends on 31st December 2025. This 3% increase is higher than the previous 2% hike in January-June 2025, which was the smallest in over six years. A central government employee with a basic salary of Rs 18,000 will see their DA rise by Rs 540 per month due to this hike. Pensioners will also benefit proportionately from the DA hike. Despite the 7th Pay Commission ending, DA revisions are expected to continue twice a year as usual. The focus now shifts to the formation of the 8th Pay Commission, with discussions ongoing among central government employees. The DA hike is likely to provide a modest boost to central employees' and pensioners' monthly income. The exact details of the increase and its implementation are expected to be announced soon.
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