As Diwali approaches, Central Government employees and pensioners across India are eagerly awaiting news about the next Dearness Allowance (DA) and Dearness Relief (DR) hike. Traditionally, the government announces revisions around major festivals to help employees manage rising costs, but this year, the notification has been slightly delayed, leaving many wondering when the hike will come.
DA and DR are crucial components of government salaries and pensions, helping to offset inflation and maintain purchasing power. The government revises these allowances twice a year—once in January and again in July—ensuring employees and pensioners are not disproportionately affected by rising costs.
Notably, the Union Cabinet has already approved a performance-linked bonus for railway employees. The Confederation of Central Government Employees and Workers (CCGEW) has, meanwhile, expressed concern over this delay, noting that the usual timeline of announcement in late September and arrears payout in early October has been disrupted.
Previous DA/DR Increase
Earlier in March 2025, the government had raised the DA/DR by 2 percent, effective from January 1. This revision increased the rate to 55 percent, providing employees and pensioners with additional funds to cope with inflation and everyday expenses. Arrears for the months from January to March were also disbursed promptly, ensuring timely compensation.
Expected DA/DR Revision in October 2025
Reports claim that the next DA/DR revision may be announced in the second week of October 2025, just ahead of Diwali. The government is likely to approve a 3 percent increase, raising the DA/DR rate to 58 percent. This hike is expected to bring some relief as prices of goods and services continue to rise, offering a financial boost for festival shopping and celebrations.
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Impact on Salaries and Pensions
A 3 percent increase would add about Rs 540 to the monthly income of an employee with minimum basic salary of Rs 18,000 under the 7th Pay Commission. That means, their total salary would jump to Rs 28,440. Pensioners with a minimum pension of Rs 9,000 would receive an additional Rs 270, bringing their total pension to Rs 14,220 at the revised 58 percent rate. According to a report ET Now News, the hike, if approved, is expected to be effective from July 1, 2025, with arrears paid for previous months.
DA and DR are crucial components of government salaries and pensions, helping to offset inflation and maintain purchasing power. The government revises these allowances twice a year—once in January and again in July—ensuring employees and pensioners are not disproportionately affected by rising costs.
Notably, the Union Cabinet has already approved a performance-linked bonus for railway employees. The Confederation of Central Government Employees and Workers (CCGEW) has, meanwhile, expressed concern over this delay, noting that the usual timeline of announcement in late September and arrears payout in early October has been disrupted.
Previous DA/DR Increase
Earlier in March 2025, the government had raised the DA/DR by 2 percent, effective from January 1. This revision increased the rate to 55 percent, providing employees and pensioners with additional funds to cope with inflation and everyday expenses. Arrears for the months from January to March were also disbursed promptly, ensuring timely compensation.Expected DA/DR Revision in October 2025
Reports claim that the next DA/DR revision may be announced in the second week of October 2025, just ahead of Diwali. The government is likely to approve a 3 percent increase, raising the DA/DR rate to 58 percent. This hike is expected to bring some relief as prices of goods and services continue to rise, offering a financial boost for festival shopping and celebrations.Add 
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