DA Hike: Just before the Diwali festival, the central government has given significant good news to central government employees and pensioners. The Union Cabinet has approved a 3 percent increase in Dearness Allowance (DA). With this increase, the total DA rate has now increased from 55 percent to 58 percent. This decision will benefit approximately 11.5 million central government employees and pensioners. This increase will be effective from July 1, 2025, meaning the increased DA for the period from July to September will be credited with the October salary.

What does the dearness allowance increase mean?
Dearness allowance is a crucial component of salary and pension, providing relief to employees and pensioners in response to rising inflation. The central government revises the DA twice a year, in January and July, to maintain employees' standard of living despite rising expenses. This decision is considered a significant boon, especially during the festive season, as inflation increases pressure on household budgets. The government also announced a 2 percent increase in March 2025, increasing the DA from 53 percent to 55 percent. This rate has now reached 58 percent. This increase was made based on the recommendations of the Seventh Central Pay Commission.

Old allowance will be paid in the October salary.
This decision by the central government will take effect from July 1, 2025, but will be paid with the October salary. This means that employees and pensioners will receive the additional DA for the three months of July, August, and September together in the October salary. Approximately 4.8 million central employees and 6.8 million pensioners are eligible for this benefit. Experts say that this increase in dearness allowance is an important step to protect employees and pensioners from the rising pressure of inflation. This government decision will not only provide financial relief but also contribute to socio-economic stability during the festive season.

How much will the salary increase be?
Central employees currently receive 55% dearness allowance (DA). Now, an increase of approximately 3% has been approved, increasing the DA to 58%. This increase will be effective from July 1, 2025. This means that employees will now receive 58% of their basic salary as dearness allowance. Suppose an employee's basic salary is ₹60,000, and they currently receive ₹33,000 as dearness allowance under 55% DA. After this 3% increase, they will receive ₹34,800 as dearness allowance. This means their monthly gross salary will increase by ₹1,800.

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