DA Hike October 2025: 3% Increase for Central Government Employees
What Is Dearness Allowance?
Dearness Allowance is a key component of government salaries, designed to offset inflation. It is revised twice a year based on the All-India Consumer Price Index.
Details of the Latest DA Hike
The latest approval raises DA by 3%, bringing the overall rate to 58% of basic pay. Pensioners will also see a similar rise in Dearness Relief.
This adjustment follows the 7th Pay Commission formula to maintain real income amid inflation.
Impact on Central Government Employees
- Effective from October 1, 2025.
- Applies to 49.19 lakh central government employees.
- Benefits 68.72 lakh pensioners.
- Estimated cost to government: ₹10,083.96 crore annually.
Comparison with Previous Hikes
Earlier, in March 2025, DA was raised by 2% to 55%. With this new 3% increase, it now totals 58%, cushioning employees and pensioners against rising prices.
What Employees Can Expect
The increase in take-home salary depends on pay level. For example, an employee with ₹30,000 basic pay will get around ₹900 more per month as DA.
DA Hike Table (October 2025)
| Effective Date | DA Rate | Increase |
|---|---|---|
| Jan 1, 2025 | 55% | +2% |
| Oct 1, 2025 | 58% | +3% |
FAQs on DA Hike October 2025
When will the new DA rates be applicable?
October 1, 2025.
How many employees and pensioners benefit?
About 49 lakh employees and 68 lakh pensioners.
What is the financial impact on the government?
Estimated at ₹10,083.96 crore per year.
How is DA calculated?
Based on the All-India Consumer Price Index using the 7th Pay Commission formula.
Disclaimer
Information is based on official announcements regarding DA hike for central government employees and pensioners. Actual benefits may vary based on pay structure.
