<h1>Government raises Dearness Allowance by 3% to 58% for central employees and pensioners from 1 July 2025</h1> The government approved an additional instalment of Dearness Allowance for central employees and Dearness Relief for pensioners, effective 1 July 2025, raising the rate by 3 percentage points from 55% to 58% of basic pay/pension to offset inflation. The measure follows the 7th Central Pay Commission formula and will cost the exchequer approximately Rs.10083.96 crore per year. About 49.19 lakh central employees and 68.72 lakh pensioners will benefit from the increase.