In March of this year, the government announced a 2% hike in the dearness allowance , effective from January 2025 , to be paid to central government employees and pensioners, raising it to 55% of their basic pay. Prior to this hike , the DA was at 53% of basic pay. The July 2025 Dearness Allowance hike is expected to bring a 3% increase, raising DA from 55% to 58% . Once the Union Cabinet clears the proposal, employees and pensioners will see not only higher monthly payments but also three months of arrears. The second dearness allowance (DA) hike for central government employees in 2025 is set to take effect from July 1, 2025 according to the Financial Express report. DA Hike July 2025: The central government has approved a 3 per cent increase in the dearness allowance (DA) for all government employees and pensioners. The latest revision in the DA rates aims to provide financial support to the employees ahead of the Dussehra and Diwali festivals.
