Big news for 1.2 crore central government employees and pensioners, govt to increase DA before Diwali; Full details inside

New Delhi: There is good news for more than 1.2 crore central government employees and pensioners. Just before Diwali, the government plans to increase the Dearness Allowance (DA) and Dearness Relief (DR) by 3%. This will give some relief to the employees from inflation. DA will increase from 55% to 58%. This increase will be effective from July 2025. Employees and pensioners will also get three months’ arrears, which will be given with the October salary. This will give great relief to the people during the festive season.

Diwali gift

The government increases DA twice a year. Once before Holi, from January to June, and a second time before Diwali, from July to December. Last year, the government announced the increase in DA on 16 October 2024. This year, Diwali is on 20-21 October. Therefore, this time too it is expected that the government will announce an increase in DA before Diwali. It is being considered as a Diwali gift.

How is DA decided?

It is decided under the 7th Pay Commission. For this, the Consumer Price Index for Industrial Workers (CPI-IW) is looked at. The 12-month average of CPI-IW is taken into account. From July 2024 to June 2025, the average of CPI-IW was 143.6, according to which DA is 58%. This means that the DA of the employees will increase by 3%.

How much will the salary and pension increase?

Suppose the basic salary of an employee is Rs 50,000. Earlier, according to 55% DA, he used to get Rs 27,500. Now, according to 58% DA, he will get Rs 29,000. That is, he will get Rs 1,500 more every month. Similarly, if the basic pension of a pensioner is Rs 30,000, then DR was Rs 16,500 at the rate of 55%. Now it will be Rs 17,400 at the rate of 58%. That is, they will get Rs 900 more every month. Different people will get different benefits according to salary and pension. But, overall, this increase will give more money to lakhs of families.

Last DA hike in 7th Pay Commission

This is the last DA hike under the 7th Pay Commission. This commission is ending on 31 December 2025. The government has announced the 8th Pay Commission in January 2025. It is expected that its recommendations will be implemented in late 2027 or early 2028.

The Labour Bureau has recently released the All-India(BHARAT) CPI-IW for July 2025. It has increased by 1.5 points to 146.5. It had increased by 0.69% in June. But the July data will not affect the DA hike this time. This time, the hike is being done on the basis of the average till June 2025. The July data will be used in the next DA hike, which will happen in January 2026.

HIGHLIGHTS

• Big news for 1.2 crore central government employees and pensioners, the government is to increase DA.
• Just before Diwali, the government plans to increase the Dearness Allowance (DA) and Dearness Relief (DR) by 3%.
• This will give some relief to the employees from inflation as DA will increase from 55% to 58%.
• Employees and pensioners will also get three months’ arrears, which will be given with the October salary.

The government increases DA twice a year. Once before Holi, from January to June, and a second time before Diwali, from July to December. Last year, the government announced the increase in DA on 16 October 2024. This year, Diwali is on 20-21 October. Therefore, this time too it is expected that the government will announce an increase in DA before Diwali. It is being considered as a Diwali gift.