DA Hike 2025: Central Employees, Pensioners Get 3% Raise Before Dussehra, Diwali

DA Hike: The Union Cabinet has approved a 3% hike in DA for central government employees and pensioners, raising it from 55% to 58% of pay and pension. Effective from July 1, 2025, arrears for July-September will be paid with October salary.

DA Hike 2025

In a timely boost ahead of the festive season, the Union Cabinet on Wednesday approved a 3 per cent increase in Dearness Allowance (DA) for central government employees and pensioners. The move comes just ahead of major festivals like Dussehra and Diwali, offering some extra financial relief.

DA Rate Rises to 58%

With the revision, the DA rate has risen from 55 per cent to 58 per cent of basic pay and pension. The hike will be applied retrospectively from July 1, 2025, and arrears for July, August, and September will be included in the October salary, ensuring employees have additional funds just in time for Diwali shopping and festivities.

For example, a central employee with a basic salary of Rs 30,000 will see an extra Rs 900 per month, while those earning Rs 40,000 will get Rs 1,200 more. Over the three-month arrears period, this translates to Rs 2,700 to Rs 3,600, giving timely festive relief.

Who Will Benefit

The DA hike covers all central government employees under the 7th Pay Commission, along with pensioners and family pensioners. The revision is expected to benefit approximately 48 lakh employees and 68 lakh pensioners across the country.

How DA and DR Are Calculated

Dearness Allowance (DA) and Dearness Relief (DR) are revised twice a year, in January and July, based on inflation trends measured by the All India Consumer Price Index for Industrial Workers (CPI-IW). While official announcements often come later, arrears ensure that employees are compensated for the delay.

Last Revision Under 7th Pay Commission

This 3 per cent hike is expected to be the last DA revision under the 7th Pay Commission, as the 8th Pay Commission is likely to take effect from January 2026.