In a much-awaited update, central government employees and pensioners will see the DA moving from 55 to 58 percent (with retrospective effect from July 1, 2025). Now stock-market-wise, this 3% DA hike shall affect over 1 crore beneficiaries in the country, based on recent All India Consumer Price Index (AICPI) figures.
A Timely Diwali Gift: Arrears Included
This adjustment is considered more of a bonus gift, with a formal announcement expected at the Union Cabinet meeting in October right before Diwali. As the payments are retrospective, employees and pensioners will get arrears for July, August, and September, which may be payable along with the October salary.
How DA Increases Affect Salaries
DA raise means real raises:
- With a basic pay of Rs 18,000: The current DA of 55 per cent stands at Rs 9,900, which is increased by Rs 540 per month at the new rate of 58 per cent, adding Rs 6,480 in a year.
- Government pensioners will also get the proportionate increase in Dearness Relief (DR), though no exact figures are given in the article.
- This increase provides some much-needed relief, giving a cushion to the households against inflation during the festival season.
Last DA Hike under The 7th Pay Commission.
Following this revision, the DA last adjustment will be under the 7th Pay Commission, which ends the year 2025. Given that, the 8th Pay Commission will come into force from January 2026, thereby lifting DA again and merging it with the basic pay.
With this increase in DA being made, the second half would set in by government tradition whereby once around Holi would be the first and second before Diwali.
Also Read: Unified Pension Scheme 2025: Early Retirement Benefits For Govt Employees