New Delhi: There’s good news coming for central government employees and pensioners just before the festive season. The government is likely to increase the Dearness Allowance (DA) by 3 percent, which will help over 1.2 crore employees and pensioners manage their household expenses better during Diwali and Dussehra.
DA Likely to Go Up from 55 percent to 58 percent
Currently, central employees receive 55 percent DA, and it is expected to rise to 58 percent. The central government revises DA twice a year — once before Holi (for January–June) and again around Diwali (for July–December). Since Diwali falls on October 20-21 this year, the DA hike announcement is expected soon as a festive gift.
Last year, the DA increase was announced on October 16, a few days before Diwali. A similar timeline is likely this year too.
Hike Based on Inflation Data
The hike is based on inflation trends. The Consumer Price Index for Industrial Workers (CPI-IW) is used to calculate DA under the 7th Pay Commission. For the period July 2024 to June 2025, the average CPI-IW was 143.6, which supports a 3 percent hike in DA for the July–December 2025 period.
This increase will be effective from July 2025, and employees are likely to receive arrears for July to September along with their October salary.
How Much Extra Will Employees and Pensioners Get?
Let’s say a central government employee has a basic salary of Rs 18,000. Under the current 55 percent DA, they get Rs 9,900 as DA. After the 3 percent increase to 58 percent, this amount will become Rs 10,440, meaning an increase of Rs 540 per month.
For pensioners with a basic pension of Rs 20,000, the monthly increase will be around Rs 600.
Why This Hike Matters
This DA hike will help reduce the impact of inflation and give employees and pensioners more money to spend during the festive season. It’s not just a salary boost — it’s a step toward financial stability and a better standard of living for millions of families.
The increase will also likely boost demand in the market, helping the economy during the important festival period.
