The Union Cabinet has cleared a 3% hike in Dearness Allowance (DA) for central government employees and pensioners, weeks ahead of Diwali. Union Minister Ashwini Vaishnaw, during a Cabinet briefing, said that it will be effective from July 1 2025, adding that it will benefit around 49.2 lakh employees. DA/DR hike will now be 58% of basic pay.