<h1>Central government raises Dearness Allowance and Relief by 3% to 58% of basic pay/pension from July 1, 2025</h1> The central government has approved a 3% increase in Dearness Allowance and Dearness Relief, raising the rate to 58% of basic pay/pension effective July 1, 2025, based on the accepted formula from the seventh pay commission. The measure applies to central government employees and pensioners, estimated to benefit about 49.19 lakh employees and 68.72 lakh pensioners, with an annual fiscal impact of approximately Rs 10,083.96 crore. The decision follows recent consumption tax rationalisation and constitutes one of the twice-yearly statutory DA/DR revisions.