This time Diwali can be very special for government employees and pensioners. Please tell that the central government is preparing to bring a big gift for them. According to media reports, the government can announce an increase in dearness allowance (DA) before Diwali.
The lead in DA may be announced in late September or early October. The special thing is that the increase in dearness allowance this time can be the last under the 7th Pay Commission, because the 8th Pay Commission is likely to be implemented from 1 January 2026.
At present, the central government employees are getting 55% DA, but now it is expected to increase by 3 to 4 percent. If the government increases 4% DA, it will increase to 59%. On the other hand, if there is a 3% increase, DA will reach 58%.
If DA increases 3%, then employees whose basic salary is ₹ 18,000 will get ₹ 540 more every month. At the same time, pensioners whose basic pension is ₹ 9,000 will benefit ₹ 270 per month. That is, before Diwali, extra money can come in their pockets.
Although the new DA rates will be considered applicable from July 1, the government announces it in September. In such a situation, employees and pensioners will also get three months arrears of July, August and September.
The government amends the dearness allowance twice a year. First time in January and second time in July. Every time it is announced after a few months, so that the data of CPI-IW i.e. Consumer Price Index for Industrial Workers can be completed and on this basis the government fixes the rates of DA.
The government uses CPI-IW data issued by the Labor Bureau to increase DA. The government changes DA based on the average CPI-IW of the last 12 months and the entire process is according to the rules of the 7th Pay Commission.
