The central government has approved a 3% increase in Dearness Allowance (DA) for central government employees and pensioners.
This decision comes just before major festivals like Dussehra and Diwali.
Around 48 lakh employees and 68 lakh pensioners will benefit.
The DA rate has gone up from 55% to 58%.
The hike is effective from July 1, 2025.
Arrears for July, August, and September will be paid with the October salary, before Diwali.
How Much Extra Salary or Pension?
This increase applies to all central government employees, pensioners, and family pensioners under the 7th Pay Commission.
An employee with a minimum basic salary of ₹18,000 will get an extra ₹540 per month, making their salary ₹28,440.
Pensioners with a minimum pension of ₹9,000 will get an extra ₹270 per month, taking their total pension to ₹14,220 at the new 58% rate.
Including three months of arrears (July–September), employees will receive a bonus of ₹2,700 to ₹3,600.
How DA and DR Are Calculated
The Dearness Allowance (DA) is decided based on the Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labor Bureau under the Ministry of Labor.
Although announcements are often delayed, employees and pensioners receive arrears (Dearness Relief – DR) for the pending period.
Update on 8th Pay Commission
The government announced the 8th Pay Commission in January 2025.
However, the official notification with details about commission members and the Terms of Reference (ToR) is still awaited.
The new pay structure will be implemented from January 1, 2026. At that time, the DA (currently at 55%) will be reset to zero and merged with the basic salary.
