Government employees and pensioners got a big relief in 2025. Dearness Allowance (DA) and Dearness Relief (DR) were increased to 50%. This means half of your basic pay or basic pension is now added as DA or DR.
This step helps fight inflation and the rising cost of living. It brings more money into the hands of employees and pensioners.
What Are DA and DR?
DA is an extra amount paid to serving government employees. It is added to the salary to balance the effect of inflation.
DR is for pensioners. It increases the pension to match the cost of living.
Both DA and DR are given as a percentage of basic pay or pension. At 50%, all allowances linked to DA/DR also increase.
How To Calculate Revised Salary or Pension
The calculation is simple.
For serving employees:
- Take the basic pay.
- Add 50% as DA.
- Add allowances that are not linked to DA.
For pensioners:
- Take the basic pension.
- Add 50% as DR.
- Add other pension benefits.
Example Table
| Category | Basic Pay/Pension | DA/DR @ 50% | Other Allowances/Benefits | Total Gross Income |
| Employee 1 | ₹15,000 | ₹7,500 | ₹4,500 | ₹27,000 |
| Employee 2 | ₹40,000 | ₹20,000 | ₹10,000 | ₹70,000 |
| Pensioner 1 | ₹12,000 | ₹6,000 | ₹2,000 | ₹20,000 |
| Pensioner 2 | ₹25,000 | ₹12,500 | ₹3,500 | ₹41,000 |
Effect on Pay Scales and Pension
With this increase, pay scales and pension schedules will be updated. Government departments will issue revised pay matrices.
Pensioners will also get updated pension statements. Employees and retirees must check official notifications to know their new figures.
Things to Keep in Mind
Not all allowances are linked to DA or DR. Some allowances remain the same.
There may be a small delay before you see the updated salary or pension in your slip.
The higher gross income may increase your tax. So, plan your tax accordingly.
What You Should Do Now
Check your latest payslip or pension slip. See your basic pay or pension and your allowances.
Use the 50% DA or DR to get a rough idea of your new income.
Wait for official communication from your office or pension authority. If you notice mistakes, contact your payroll or pension office.
FAQs
How much is DA/DR in 2025?
It is 50% of basic pay or pension.
Who gets DA?
Serving government employees.
Who gets DR?
Retired government employees.
Will tax increase after DA/DR hike?
Yes, it may increase.
Do all allowances rise with DA/DR?
No, only linked allowances rise.