Current Affairs - National - Discussion

The Union Cabinet approved a 3% hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from October 1, 2025. This increase raises the DA rate from 55% to 58% of Basic Pay/Pension and benefits over 1.18 crore people, including 49.19 lakh employees and 68.72 lakh pensioners. The move aims to offset rising inflation and maintain purchasing power. The financial impact of this hike is estimated at ₹10,083.96 crore annually. This adjustment follows the periodic DA revisions under the 7th Central Pay Commission formula to protect the livelihood of government employees and retirees.