This decision will benefit over 12 million central government employees and pensioners. The DA/DR rate has now increased from 55% to 58%. This increase will be effective from July 1, 2025.
The central government on October 1st gave a major festive gift to employees and pensioners. The government announced a 3% increase in dearness allowance (DA) and dearness relief (DR) for the period July-December 2025. This decision will benefit more than 12 million central employees and pensioners. The DA/DR rate has now increased from 55% to 58%. This increase will be effective from July 1, 2025.
How much benefit will Level-1 employees get?
The minimum basic salary of a Level-1 central government employee is ₹18,000. The 3% DA hike will increase their income by an additional ₹540 per month. Now, a Level-1 employee will receive a total DA of ₹10,440 (58% of ₹18,000) on their basic salary.
Pensioners benefit
Pensioners with a minimum pension of ₹9,000 will receive an additional ₹270 per month as DR. This means that pensioners will now receive ₹5,220 per month (58% of ₹9,000) as DR.
Arrears benefit also
This increase will be effective from July 1, 2025. This means that the October salary and pension will also include arrears from July to September. Level-1 employees will receive arrears of ₹1,620 (₹540 × 3 months).
Bonus announcement
The government has also announced a bonus for employees. The Finance Ministry issued an order stating that Group C and non-gazetted Group B employees will receive an ad-hoc bonus equal to 30 days’ salary for the year 2024-25. This bonus has been set at ₹6,908. However, this bonus will only be given to employees who are in service as of March 31, 2025, and have worked continuously for at least six months. Employees who have not worked for the entire year will receive the bonus on a pro-rata basis.
Total benefits to Level-1 employee
If we look at just Level-1 employees, they will get a total additional benefit of ₹8,528 in October:
- – DA arrears: ₹1,620
- – Bonus: ₹6,908
Apart from this, their salary will be permanently increased by ₹540 per month.
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