3% DA Hike Announced Before Diwali, Govt Employees to Get 3 Months' Arrears

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.

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Diwali Salary Hike

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.

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7th Commission's Last Hike

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.