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Centre hikes DA/DR by 3 per cent; to benefit 1.18 crore employees, pensioners

The combined impact on the exchequer on account of an increase in DA and DR will be Rs 10,083.96 crore per annum

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The Union Cabinet on Wednesday increased Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent for about 49.19 lakh Central Government employees and 68.72 lakh pensioners.

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The DA/DR increase of 3 per cent over the existing rate of 55 per cent of the basic pay/pension to compensate against the price rise is effective July 1, 2025.

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The combined impact on the exchequer on account of an increase in DA and DR will be Rs 10,083.96 crore per annum, I&B Minister Ashwini Vaishnaw said while briefing on decisions taken in the Cabinet meeting.

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The increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

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