**Executive Summary**
This Office Memorandum from the Ministry of Finance, Department of Expenditure, announces the revision of Dearness Allowance (DA) rates for Central Government employees. Effective July 1, 2025, the DA rate will be enhanced from 55% to 58% of the Basic Pay. Separate orders regarding Armed Forces personnel and Railway employees will be issued by their respective ministries.
**Key Points / Main Content**
* **Revised DA Rate:**
* DA rate for Central Government employees increased from 55% to 58% of Basic Pay.
* Effective date: July 1, 2025.
* **Definition of Basic Pay:**
* Basic Pay is defined as the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government.
* Basic Pay excludes any other type of pay like special pay, etc.
* **DA Nature and Rounding:**
* DA will remain a distinct element of remuneration and not be treated as pay within the ambit of FR 9(21).
* Fractions of 50 paise and above in DA calculations may be rounded off to the next higher rupee, while fractions less than 50 paise may be ignored.
* **Applicability:**
* These orders also apply to civilian employees paid from the Defence Services Estimates.
* Expenditure will be chargeable to the relevant head of the Defence Services Estimates.
* **Separate Orders:**
* Separate orders will be issued by the Ministry of Defence and the Ministry of Railways for Armed Forces personnel and Railway employees, respectively.
* **Indian Audit and Accounts Department:**
* These orders are issued in consultation with the Comptroller and Auditor General of India.
**Impact Analysis**
**Central Government Employees**
* **Impact:** Increased remuneration due to the enhanced DA rate, impacting their net income.
* **Action Required:** No specific action required, but employees should expect an increase in their DA with their July 2025 salaries and check payslips for accuracy.
**Ministry of Defence and Ministry of Railways**
* **Impact:** Required to issue separate orders for Armed Forces personnel and Railway employees, respectively.
* **Action Required:** Issue and communicate separate orders regarding DA rates for their respective employees.
**Indian Audit and Accounts Department**
* **Impact:** Orders issued in consultation with the Comptroller and Auditor General of India.
* **Action Required:** Awareness of revised DA calculations.
**Ministries/Departments of the Government of India**
* **Impact:** Implementation of the revised DA rates for their employees.
* **Action Required:** Implement the revised DA rates in their payroll systems for eligible employees.
Key Entities Referenced
Dearness Allowance: The subject of the memorandum, specifically a revision of rates for Central Government employees.
Ministry of Finance: The issuing department for the memorandum regarding Dearness Allowance revisions.
7th CPC: Refers to the 7th Central Pay Commission, whose recommendations are used to determine the Basic Pay structure.
FR 9(21): Financial Rule 9(21), which specifies the ambit within which Dearness Allowance is not treated as pay.
No.1/4(i)/2025-E.1I(B)
Government of India
Ministry of Finance
Department of Expenditure
kRRKKK
Kartavya Bhavan 1, Kartavya Path,
New Delhi-110001
Dated the 06" October, 2025
OFFICE MEMORANDUM
Subject: Revision of rates of Dearness Allowance to Central Government employees-
effective from 01.07.2025.
The undersigned is directed to refer to this Department’s Office Memorandum No.
1/1(1)/2025-E.1I(B) dated 2"° April, 2025 on the subject mentioned above and to say that the
President is pleased to decide that the rates of Dearness Allowance payable to Central Government
employees, shall be enhanced from 55% to 58% of the Basic Pay with effect from 1% July, 2025.
2. The term Basic Pay in the revised pay structure means the pay drawn in the prescribed Level
in the Pay Matrix as per 7" CPC recommendations accepted by the Government, but does not
include any other type of pay like special pay, etc.
3. The Dearness Allowance will continue to be a distinct element of remuneration and will not
be treated as pay within the ambit of FR 9(21).
4. The payment on account of Dearness Allowance involving fractions of 50 paise and above
may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.
5. These orders shall also apply to the civilian employees paid from the Defence Services
Estimates and the expenditure will be chargeable to the relevant head of the Defence Services
Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be
issued by the Ministry of Defence and the Ministry of Railways, respectively.
6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned,
these orders are issued in consultation with the Comptroller and Auditor General of India, as
mandated under clause (5) of Article 148 of the Constitution of India.
Hindi version is attached. ‘ y
(Samir Kumar Das)
Deputy Secretary to the Government of India
To
All Ministries/Departments of the Government of India (as per standard distribution list)
Copy to: C&AG, UPSC, etc. as per standard endorsement list.