Important Update on Dearness Allowance on Govt Employees
Centre Govt hikes dearness allowance for Central Government Employees from 55% to 58% effective from July 1, 2025
Revision of rates of Dearness Allowance to Central Government employees — effective from 01.07.2025.
The undersigned is directed to refer to this Department’s Office Memorandum No. 1/1(1)/2025-E.II(B) dated 2nd April, 2025 on the subject mentioned above and to say that the President is pleased to decide that the rates of Dearness Allowance payable to Central Government employees shall be enhanced from 55% to 58% of the Basic Pay with effect from 1st July, 2025.
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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.
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The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
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The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.
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These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and the Ministry of Railways, respectively.
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In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under clause (5) of Article 148 of the Constitution of India.
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