Centre hikes DA/DR by 3 pc for employees, pensioners

Cabinet approves opening of 57 new KVs
* 150 yrs of Vande Mataram song to be celebrated

NEW DELHI, Oct 1:
In a Diwali bonanza to Central Government employees and pensioners, the Union Cabinet on Wednesday decided to increase Dearness Allowance (DA)/ Dearness Relief (DR) by 3 per cent envisaging an annual outlay of Rs 10,083.96 crore.

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The hike in DA and DR comes days after rationalisation of GST rates, bringing down prices of mass consumption items like ghee, paneer, butter, ‘namkeen’, ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC, washing machines will become cheaper.
The DA/DR increase of 3 per cent over the existing rate of 55 per cent of the basic pay/pension to compensate against the price rise is effective from July 1, 2025.
This will benefit about 49.19 lakh Central Government employees and 68.72 lakh pensioners.
The combined impact on the exchequer on account of an increase in DA and DR will be Rs 10,083.96 crore per annum, I&B Minister Ashwini Vaishnaw said while briefing on decisions taken in the Cabinet meeting.
The Cabinet also approved opening of 57 new Kendriya Vidyalayas (KVs) which would benefit over 86,000 students, Union Minister Ashwini Vaishnaw said.
Out of the 57 new KVs, seven will be sponsored by the Union Home Ministry, and the rest by State Governments. Twenty of the newly approved KVs are proposed to be opened in districts where no KV presently exists despite a significant number of Central Government employees.
“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved opening of 57 new Kendriya Vidyalayas under Civil sector across the country to facilitate the educational needs of the wards of increased number of central government employees,” Vaishnaw said at a press conference.
The total estimated requirement of funds for establishment of the 57 new KVs is Rs 5862.55 crore spread over a period of nine years from 2026-27. This includes capital expenditure component of Rs 2585.52 crore and operational expenditure of Rs 3277.03 crore.
It is worthwhile to note that as exemplar schools for National Education Policy (NEP) 2020, for the first time, these 57 KVs have been sanctioned with Balvatikas — three years of foundational stage (pre-primary).
“Opening of new KVs is a continuous process. The Ministry and KVs regularly receive proposals from various Sponsoring Authorities, including Central Government Ministries, departments, states and UTs for opening of new KVs.
“These proposals are sponsored by the concerned sponsoring authority–state, UTs, Ministries, Departments of Central Government,” an official statement said.
There are 1,288 functional KVs at present including three abroad — Moscow, Kathmandu and Tehran. The total enrolment of students is around 13.62 lakh.
“Together with the earlier sanctioning of 85 KVs, the instant proposal responds to the high demand for KVs while balancing pan-India expansion. The CCEA has approved 7 KVs sponsored by the Ministry of Home Affairs and the remaining 50 by State and UT authorities,” it said.
“The 57 new proposals for Kendriya Vidyalayas reflect a strong commitment to reaching underserved and strategically important regions. The proposal demonstrates an approach, which anchors growth in the East while ensuring balanced representation across North, South, and West to strengthen inclusivity and national integration,” the statement said.
Meanwhile, the Cabinet decided to celebrate 150 years of the national song, ‘Vande Mataram’, across India.
The Constituent Assembly had accorded ‘Vande Mataram’, composed by Bankimchandra Chatterji, the status of national song.
Briefing reporters on the decisions taken by the Union Cabinet, Union minister Ashwini Vaishnaw said that keeping in mind the role played by the song during the freedom struggle, a decision was taken to hold country-wide celebrations to mark its 150th year.
According to the ‘India.Gov’ portal, Vande Mataram was composed in Sanskrit by Chatterji. It has an equal status with the national anthem, Jana-gana-mana.
The Government has also announced a 6.59 per cent increase in the minimum support price (MSP) for wheat to Rs 2,585 per quintal for 2026-27 marketing year.
The decision was taken in the Cabinet meeting chaired by Prime Minister Narendra Modi here.
Last year, wheat MSP was fixed at Rs 2,425 per quintal for 2025-26 marketing year.
Wheat is the main rabi (winter) crop, with sowing beginning from late October, while harvesting from March onwards. Other rabi crops include jowar, barley, gram and lentil.
Briefing media after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said, “The Cabinet has approved MSP of six rabi crops for 2026-27 marketing year. Wheat MSP has been fixed at Rs 2,585 per quintal.”
Wheat marketing year 2026-27 will start from April. However, the bulk of procurement ends in June itself.(PTI)