New Delhi [India], October 1 : The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a 3 per cent increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2025.
This raises the existing rate from 55 per cent to 58 per cent of the basic pay or pension, according to a release by the Cabinet.
The hike, aimed at offsetting the impact of inflation, will benefit approximately 49.19 lakh Central Government employees and 68.72 lakh pensioners.
The total financial implication of this decision on the exchequer is estimated at Rs 10,083.96 crore annually.
The revision follows the formula based on the recommendations of the 7th Central Pay Commission.
In other decisions, the cabinet approved the 'Mission for Aatmanirbharta in Pulses' - a landmark initiative aimed at boosting domestic production and achieving self-sufficiency (Aatmanirbharta) in pulses.
The Mission will be implemented over six years, from 2025-26 to 2030-31, with a financial outlay of Rs 11,440 crore.
Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, also approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2026-27.
The government has increased the MSP of Rabi Crops for Marketing Season 2026-27, to ensure remunerative prices to the growers for their produce.
The absolute highest increase in MSP has been announced for Safflower at Rs 600 per quintal, followed by Lentil (Masur) at Rs 300 per quintal.
For Rapeseed & Mustard, gram, barley, and wheat, there is an increase of Rs 250 per quintal, Rs 225 per quintal, Rs 170 per quintal and Rs 160 per quintal respectively.
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