DA for Central Govt employees hiked by 3 percent from July
By Sunil Kumar Batra
New Delhi, Oct 1 (BVI) Union Government today announced an additional installment of 3 per cent Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, retrospectively with effect from July, 2025.
With this hike, the DA will increase from existing rate of 55 per cent of the basic pay/pension to 58 per cent, an official statement said after the Cabinet meeting chaired by Prime Minister Narendra Modi.
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs.10083.96 crore per annum. This will benefit about 49.19 lakh Central Government employees and 68.72 lakh pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
In another major decision, the Cabinet Committee on Economic Affairs (CCEA) has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2026-27.
It 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.
The increase in MSP for mandated Rabi Crops for Marketing Season 2026-27 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average Cost of Production.
The expected margin over All-India weighted average cost of production is 109 percent for wheat, followed by 93 percent for rapeseed & mustard; 89 per cent for lentil; 59 per cent for gram; 58 percent for barley; and 50 percent for safflower.
This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification, the official statement said.
The Union Cabinet has also approved the Mission for “Aatmanirbharta in Pulses” – a landmark initiative aimed at boosting domestic production and achieving self-sufficiency in pulses. The Mission will be implemented over a six-year period, from 2025-26 to 2030-31, with a financial outlay of Rs 11,440 crore.
The mission seeks to achieve the goal of self-reliance in pulses, reduce import dependency and conserve valuable foreign exchange while boosting farmers’ incomes. This mission will also accrue significant environmental benefits in the form of climate resilient practices, and improved soil health and making productive use of crop fallow areas. (BVI)
