Disparity Reduction Allowance 2025: 30% for Eligible Federal Employees

Finance Division Office Memorandum No. 14(2)R-3/2025 dated 4 July 2025 sanctioned Disparity Reduction Allowance-2025 at 30% of basic pay as on 30 June 2022 for officers and officials in BPS-1 to BPS-22 who were already drawing DRA, effective 1 July 2025.

Key Details of the Notification

• Rate: 30% of basic pay as on 30 June 2022.
• Coverage: BPS-1 to BPS-22 employees already drawing Disparity Reduction Allowance.
• Effective date: 1 July 2025.
• Existing terms and conditions under the Finance Division memoranda dated 23 February 2022 and 19 July 2022 continue to apply.
• Employees appointed on or after 1 July 2022 are allowed the allowance on the basis of the relevant initial Basic Pay Scale-2017.

Eligibility and Application

The 2025 memorandum does not create a general entitlement for every employee in BPS-1 to BPS-22. Its operative wording covers those already drawing DRA. For employees appointed on or after 1 July 2022, it specifies the relevant initial Basic Pay Scale-2017 as the basis. The 2025 memorandum expressly carries forward the conditions in the 23 February and 19 July 2022 instructions.

Frequently Asked Questions

What is the DRA-2025 rate?

30% of basic pay as on 30 June 2022.

Who is covered?

BPS-1 to BPS-22 officers and officials already drawing DRA, subject to existing terms and conditions.

When did DRA-2025 take effect?

1 July 2025.

How is DRA treated for employees appointed from 1 July 2022?

The memorandum says the allowance is admissible on the basis of the relevant initial Basic Pay Scale-2017.

Related EmployeesDesk Resources

Disparity Reduction Allowance-2026 and Federal Basic Pay Scales 2026

Official Finance Division Office Memorandum

Consult the original notification for its complete wording, scope and conditions: Download Disparity Reduction Allowance 2025: 30% for Eligible Federal Employees (PDF).