A 3% Dearness Allowance (DA) hike has been announced for Central Government employees and pensioners. The current 55% DA will increase to 58% from July 2025. Three months of arrears will be paid with October salaries.
Under the 7th Pay Commission, a 3% Dearness Allowance (DA/DR) hike has been announced. The current 55% will rise to 58% from July 2025. Three months of arrears are expected with October salaries.
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Three Months Arrears
This hike benefits 1.2 crore Central Government employees and pensioners. As usual, the DA hike is announced before Holi (Jan-Jun) and Diwali (Jul-Dec). With Diwali on October 20-21, the increased salary and arrears are expected in October.
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Central Government Employees
For example, an employee with a basic salary of Rs 18,000 currently receiving Rs 9,900 (55% DA) will now get Rs 10,440 (58% DA), a Rs 540 monthly increase. A pensioner receiving Rs 11,000 on a Rs 20,000 pension will now get Rs 11,600, a Rs 600 increase.
This hike is significant as it's the last DA hike under the 7th Pay Commission, ending on December 31, 2025. The 8th Pay Commission will then be implemented.
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When is the 8th Pay Commission?
Though the 8th Commission was announced for January 2025, members haven't been appointed, and terms of reference aren't finalized. Implementation usually takes 18-24 months, suggesting a late 2027 or early 2028 rollout. Experts predict a 30-34% salary increase.
