The Ministry of Finance, Department of Expenditure, issued an Office Memorandum dated October 6, 2025, to announce the revision of the Dearness Allowance (DA) rate for Central Government employees. The new rate is enhanced from 55% to 58% of the Basic Pay, and this change is effective from July 1, 2025. This increase applies to the pay drawn in the prescribed Level of the Pay Matrix as per the 7th Central Pay Commission recommendations, specifically excluding other types of pay. The Dearness Allowance remains a separate element of remuneration and is not classified as ‘pay’ under the relevant rules (FR 9(21)). The Employees’ Provident Fund Organisation (EPFO), through its Head Office, subsequently circulated this official memorandum to all its Additional Central P.F. Commissioners and Regional P.F. Commissioners on October 8, 2025, directing them to take necessary action regarding the revised DA rates. The orders are also applicable to civilian employees paid from the Defence Services Estimates. Fractional amounts of 50 paise and above in DA calculations must be rounded off to the next higher rupee.
Employees Provident Fund Organisation
(MINISTRY OF LABOUR & EMPLOYMENT GOVERNMENT OF INDIA)
Head Office
Plate A, Ground Floor, Block II, East Kidwai Nagar New Delhi- 110023
Website: www.epfindia.gov.in, www.epfindia.nic.in
No. H.R.D/1(71)/2020/Misc./Pt/1435 | Dated: 08, Oct 2025
To,
All Additional Central P.F. Commissioners (HQ)/ Director(PDNASS),
All Additional Central P.F. Commissioners (Zones)/Addl.CPFC(ASD),
All RPFCs/OIC-in-Charge of Region
Subject: Revision of rates of Dearness Allowance to Central Government employees effective from 01.07.2025-reg
Sir,
Please find enclosed herewith an Office Memorandum No.1/4(i)/2025-E.II(B) dated 06.10.2025 issued by Govt. of India, Ministry of Finance, Department of Expenditure, North Block, New Delhi on the subject cited above for information and necessary action.
Sincerely
(Sourbh Tripathi)
Regional Provident Fund Commissioner-1 (HRD-1)
No. 1/4(i)/2025-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure
*****
Kartavya Bhavan 1, Kartavya Path,
New Delhi-110001
Dated the 06th 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.II(B) dated 2nd 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 1st 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.
(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.
