The Union Cabinet made many announcements on Wednesday but there was nothing mentioned on Dearness Allowance (DA) and Dearness Relief (DR) hikes. According to an employee forum associated with the Central Government, the employees and pensioners were left disappointed as they have been waiting for an increment in the key allowance since July.
A letter sent to Finance Minister Nirmala Sitharaman by the Confederation of Central Govt Employees & Workers (CCGEW) clearly stated growing "discontent" among employees and pensioners due to the delay in the DA and DR hike announcement.
In the letter dated Sept. 23, 2025, CCGEW Secretary General, SB Yadav, wrote, "I would like to draw your kind attention towards non declaration of the due installment of DA/ DR w.e.f. from 01-07-2025, normally it used to be declared in the last week of September and three months arrears paid in first week of October. Severe discontent is there amongst employees and pensioners, over the delay in announcement of the same."
"Similarly, Durga Puja festival is approaching and the PLB and Adhoc Bonus too, are to be declared. The Confederation seeks your immediate intervention in the above matter and request you to kindly cause the Declaration/Issuance of DA/ DR order's and the Bonus order's, timely," Yadav said in his letter to the Finance Minister.
The Union Cabinet had previously increased the DA and DR by 2% effective from Jan. 1, 2025, benefitting nearly 1.15 crore central government employees and pensioners. The hike had resulted in the allowance rising from 53% to 55% of the basic pay.
The increase was in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. DA and DR is paid to adjust the cost of living and protect employees and pensions from inflation.
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