DA for Central Government Employees increased to 58%

There is a good news for Central government employees. The DA of employees has been increased. The increase in DA will lead to increase in Salary.

The Ministry of Finance, Department of Expenditure, has announced an increase in the Dearness Allowance (DA) from 55% to 58% of the basic pay. The revised rates of DA will be effective from July 1, 2025.

The announcement was made through an official memorandum (No. 1/4(i)/2025-E.II(B)) issued on October 6, 2025, from the Department’s office at Kartavya Bhavan, New Delhi. The decision has been approved by the President of India. The official order is as given below. Read the official memorandum below👇

The revised rates will also apply to civilian employees paid from Defence Service Estimates. Expenditure on this account will be chargeable to the respective Defence Services Estimates. Separate orders for Armed Forces personnel and Railway employees will be issued by the Ministry of Defence and the Ministry of Railways, respectively.

How DA Hike happens?

The government revises Dearness Allowance (DA) and Dearness Relief (DR) two times every year. This helps to keep salaries and pensions in line with rising prices.The DA changes take effect from January 1 and July 1 every year.This time, the 3% DA increase will start from July 1, 2025. Employees will get the increased DA along with arrears for July, August, September, and October.Earlier, in March 2025, the government had raised the DA by 2%, from 53% to 55% of the basic pay. With this new 3% increase, the DA has now become 58% of basic pay.

Dearness Allowance (DA) hike is calculated using the Consumer Price Index for Industrial Workers (CPI-IW), which is released on a monthly basis by the Labour Bureau under the Ministry of Labour. Every month, the bureau shares these index values that track relative changes in retail prices for a specific, fixed basket of goods and services that industrial workers consume over a specific period of time.

How much Salary will increase due to DA Hike?

If an employee has a basic pay of ₹25,600, DA will increase from ₹14,080 to ₹14,848. The table depicting the hike in DA as per basic pay is given below.

Current Pay Grade (In ₹)	Present DA (55% of Basic Pay)	New DA (58% of Basic Pay)	Hike in DA/month (In ₹)
18,000	9,900	10,440	540
25,600	14,080	14,848	768
30,600	16,830	17,748	918
35,400	19,470	20,532	1,062
39,900	21,945	23,142	1,197
44,900	24,695	26,042	1,347
50,500	27,775	29,290	1,515
56,900	31,295	33,002	1,707