Union Cabinet Increases DA, DR for Union Government Employees, Pensioners

New Delhi: The Union Cabinet, on Friday (March 28, 2025), approved an additional instalment of Dearness Allowance (DA) to the Central Government employees and Dearness Relief (DR) to pensioners from effective from January 1, 2025.

The Centre said 48.66 lakh Central Government employees and 66.55 lakhs pensioners will get 2% increase over the existing rate of 53% of the basic pay or pension. It will cost ₹ 6,614.04 crore per annum to the exchequer.

Meanwhile, trade unions have condemned the decision to amend the Central Civil Service (CCS-Pension) Rules using the route of Finance Bill and alleged that it was against the interest of pensioners and done without holding any discussion with the stakeholders.

Union Information Broadcasting Minister Ashwini Vaishnaw told reporters after the Cabinet that the increase in DA and DR is in accordance with the accepted formula, which is based on the recommendations of the seventh Central Pay Commission.

Meanwhile, All India Trade Union Congress general secretary Amarjeet Kaur said in a statement here on Friday that the CCS-Pension Rules amendments betrays lakhs of pensioners. Ms. Kaur said the amendment excludes the existing pensioners from the benefits of the proposed 8th Pay Commission and making them applicable only to those Central Government Employees who retire after the implementation of 8th Pay Commission recommendations. “One Rank One Pension is always the demand of Armed Forces Personnel and ‘Parity between the past and future pensioners’ is the demand of the Central Government Civilian Pensioners. The 5th Central Pay Commission and the 6th Central Pay Commission have specifically recommended about the necessity to achieve parity between the past and the future pensioners,” she said adding that the amendment also negates Supreme Court verdicts in favour of pensioners.

“All the pensioners form a one class who are entitled to pension as per pension rules. Article 14 of the Constitution of India ensures to all, equality before law and equal protection of laws. A valid classification is truly a valid discrimination. Therefore, whenever a cut-off date (as in the present controversy) is fixed to categorise one set of pensioners for favourable consideration over others, the twin test for valid classification or valid discrimination therefore must necessarily be satisfied,” she said.