Union Cabinet, chaired by Prime Minister of India, approved a 3% additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. This increase, effective from October 1, 2025, raises the total DA/DR rate to 58% of Basic Pay/Pension, up from the previous 55%.
DA/DR Hike Details
- Beneficiaries:
- 49.19 lakh Central Government employees
- 68.72 lakh pensioners
- Financial Impact:
- Annual additional burden of ₹10,083.96 crore on the exchequer.
- Effective Date: October 1, 2025 (applicable from July 1, 2025).
- Basis: The hike follows the 7th Central Pay Commission (CPC) formula, designed to offset inflationary pressures and ensure real income stability for employees.
Recent Revision History:
- March 2025: DA increased by 2%, effective January 1, 2025, taking it to 55%.
- October 2025: Additional 3% hike → Total = 58%.
Related Cabinet Approvals
(a) Establishment of 57 New Kendriya Vidyalayas (KVs)
- Financial Outlay: ₹5,862 crore.
- Objective: Expand access to quality education across India.
- Coverage:
- 20 KVs in districts without existing schools.
- 14 KVs in Aspirational Districts.
- 4 in Left-Wing Extremism (LWE)-affected districts.
- 5 in North-East & hilly regions.
- Benefit:
- Around 87,000 students to gain access to CBSE education.
- 4,600 new teacher posts to be created.
(b) Mission for Aatmanirbharta in Pulses (2025–2031)
- Duration: 6 years (FY 2025–26 to 2030–31).
- Total Outlay: ₹11,440 crore.
- Goal: Achieve self-sufficiency in pulses and reduce import dependence.
- Target: Increase production to 350 lakh tonnes by 2030–31.
- Beneficiaries: Around 2 crore farmers through:
- Distribution of improved high-yield, pest-resistant, and climate-resilient seeds,
- Post-harvest infrastructure, and
- Assured procurement mechanisms.
- Significance: Enhances nutritional security, reduces import bills, and supports India’s food self-reliance vision under Aatmanirbhar Bharat.
(c) MSP Hike for Rabi Crops (Marketing Season 2026–27)
- Objective: Ensure remunerative prices for farmers and strengthen income support.
- Key MSP Increases:
- Safflower: ₹600/quintal (highest rise).
- Lentil (Masur): ₹300/quintal.
- Mandated Crops Covered: Wheat, Barley, Gram, Lentil (Masur), Rapeseed & Mustard, Safflower.
- Approving Body: Cabinet Committee on Economic Affairs (CCEA).
(d) Infrastructure Project: NH-715 (Assam)
- Project: Widening & improvement of Kalibor–Numaligarh section of NH-715 to four lanes.
- Length: Over 85 km.
- Estimated Cost: ₹6,957 crore.
- Mode: EPC (Engineering, Procurement, and Construction).
- Impact:
- Improved connectivity within Assam, especially Upper Assam region.
- Boosts industrial and tourism linkages.
Significance
- DA/DR Hike: Shields employees and pensioners from inflationary pressures, improving disposable income.
- Educational Expansion: Strengthens equitable access to quality education in underrepresented regions.
- Agricultural Mission: Reinforces food and income security, especially for small and marginal farmers.
- MSP Revision: Aligns with government’s goal of doubling farmers’ income.
- Infrastructure Boost: Supports economic growth through improved logistics and connectivity.
About Dearness Allowance (DA) & Dearness Relief (DR)
- DA: Cost-of-living adjustment allowance paid to Central & State Government employees to offset inflation.
- DR: Same adjustment extended to pensioners.
- Calculation Basis: Formula recommended by 7th Central Pay Commission (CPC), linked to All India Consumer Price Index (AICPI) for Industrial Workers.
- Revised Frequency: Twice a year — January and July.
Central Pay Commission (CPC)
- Purpose: Periodically review and recommend changes in salary, DA, and pension for government employees.
- 7th CPC Implementation: 1 January 2016.
- Chairperson: Justice A.K. Mathur.
- Key Features:
- Introduction of Fitment Factor (2.57x).
- Merger of grade pay with basic pay.
- Rationalization of pay matrix levels.
Kendriya Vidyalayas (KVs)
- Established Under: Ministry of Education, Government of India.
- Governing Body: Kendriya Vidyalaya Sangathan (KVS).
- First KV Established: 1963, New Delhi.
- Objective: Provide uniform, high-quality education to children of transferable Central Government employees.
Pulses and MSP Mechanism
- Major Pulses Crops: Arhar (Tur), Urad, Moong, Gram, Masur.
- Top Producing States: Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh.
- MSP Announced By: Cabinet Committee on Economic Affairs (CCEA) based on Commission for Agricultural Costs & Prices (CACP) recommendations.
- MSP Formula:
- Based on A2+FL+50% of cost — where A2 = paid-out costs, FL = imputed family labour.
National Highways Authority of India (NHAI)
- Founded: 1995 under NHAI Act, 1988.
- Parent Ministry: Ministry of Road Transport & Highways (MoRTH).
- Responsible For: Development, maintenance, and management of National Highways network.
About Assam
- Capital: Dispur
- Governor (2025): Lakshman Prasad Acharya
- Chief Minister (2025): Himanta Biswa Sarma
- Major Rivers: Brahmaputra, Barak
- National Parks: Kaziranga, Manas, Nameri, Dibru-Saikhowa
- Famous For: Tea production, Oil industry, Silk (Muga & Eri), One-horned Rhinoceros