Cabinet Approves 2% DA/DR hike effective January 2025 – Validates StaffNews expectations on DA/DR Rates

Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners w.e.f. 01.01.2025. The expectations outlined by staffnews.in regarding the Dearness Allowance (DA) and Dearness Relief (DR) for Central Government Employees and Pensioners have been officially confirmed by the Union Cabinet. The All-India CPI-IW for December 2024, which decreased by 0.8 points to 143.7, indicated a 2% increase in DA/DR, raising the rate to 55.98% under the 7th Central Pay Commission framework.

On March 28, 2025, the Union Cabinet approved the release of this additional instalment of DA and DR effective January 1, 2025. This decision will benefit approximately 48.66 lakh Central Government employees and 66.55 lakh pensioners, with an estimated annual cost of ₹6614.04 crore to the exchequer. The increment aligns with the previously established expectations and confirms the government’s commitment to compensating its workforce against inflation, thereby validating the predictions made by staffnews.in.

Cabinet Approves 2% DA/DR hike effective January 2025:-

Cabinet

Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners w.e.f. 01.01.2025

DA/DR from Jan 2025 @ 55% Confirmed – 2 प्रतिशत की वृद्धि के साथ जनवरी, 2025 से DA/DR 55 प्रतिशत निश्चित  – CPI-IW for Dec, 2024 released

48.66 lakh Central Government employees and 66.55 lakhs pensioners to benefit

2% benefit to cost Rs. 6614.04 crore per annum to exchequer

Posted On: 28 MAR 2025 4:15PM by PIB Delhi

The Union Cabinet chaired by Prime Minister Narendra Modi approved to release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53% of the Basic Pay/Pension, to compensate against price rise.

The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs. 6614.04 crore per annum. This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

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MJPS/SKS