Centre Approves 3% DA Hike for Govt Employees, Clears Major Biomedical Research Push

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 3% hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. Effective from July 1, 2025, this increase will raise the DA and DR rates from 55% to 58% of the basic pay or pension.

Union Minister Ashwini Vaishnaw shared the development during a cabinet media briefing, congratulating central employees and pensioners. “Whatever happens after the increase by the central government, the employees of the state governments also get its direct benefit,” he said.

The hike is in line with the recommendations of the 7th Central Pay Commission (7CPC), which links DA/DR revisions to inflation and aims to help employees and pensioners cope with rising living costs. The move is expected to benefit approximately 1.17 crore people — including 49.19 lakh Central Government employees and 68.72 lakh pensioners — with an estimated annual financial impact of ₹10,084 crore on the exchequer.

This marks the second such hike in 2025. Earlier, on March 28, the government had approved a 2% increase in DA and DR, effective from January 1, 2025. That decision benefitted over 1.15 crore people and carried a financial burden of ₹6,614.04 crore.

Beyond the DA hike, the Cabinet also cleared a series of key proposals across multiple sectors, amounting to a total outlay of ₹1,20,107 crore. These include approval for 57 new Kendriya Vidyalayas, a new Atmanirbhar Mission in Pulses, an increase in Minimum Support Prices (MSP) for Rabi crops, green clearance for the four-laning of the Kaliabor–Numaligarh highway in Assam, and an expanded biomedical research initiative.

Among the highlights was the approval of Phase 3 of the Biomedical Research Career Programme (BRCP), with an outlay of ₹1,500 crore. Jointly funded by India’s Department of Biotechnology (DBT) and the UK-based Wellcome Trust, the programme aims to support 401 researchers through fellowships, grants, and training. It also focuses on nurturing talent in tier-2 and tier-3 institutions and promoting greater participation from women in research.

Vaishnaw said the government is laying the foundation for India’s future in biosciences, comparing its potential to that of IT, semiconductors, and AI.