3% DA Hike Approved for Central Government Employees

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

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