Srinagar: The Central Government has formally approved a 3% hike in Dearness Allowance (DA) for its employees, raising it from 55% to 58% of the basic pay, effective from July 1, 2025.
According to an Office Memorandum issued by the Ministry of Finance, Department of Expenditure, the decision was taken with the approval of the President. The revised DA will benefit Central Government employees, including those drawing pay under the 7th Central Pay Commission (CPC) recommendations.
“The term Basic Pay in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.,” the order reads.
The memorandum further clarifies that the Dearness Allowance shall continue to remain a separate element of remuneration and will not be treated as part of the basic pay under Fundamental Rule 9(21). Payments involving fractions of 50 paise and above will be rounded off to the next higher rupee.
The enhanced DA will also apply to civilian employees paid from Defence Services Estimates, while corresponding orders for Armed Forces personnel and Railway employees will be issued separately by the respective ministries – Defence and Railways.
For employees serving under the Indian Audit and Accounts Department, the orders will be implemented in consultation with the Comptroller and Auditor General (CAG) of India, as mandated under Article 148(5) of the Constitution.
