Central government employees and pensioners are eagerly waiting for the Dearness Allowance (DA) and Dearness Relief (DR) hike.
Usually, this increase is announced around the festival season to help employees cope with rising inflation.
However, this year, the notification has been delayed, increasing anticipation among the beneficiaries.
Expected Cabinet Decision
The Union Cabinet is expected to approve a 3% increase in DA and DR, which will raise the rate from 55% to 58% of basic salary and pension.
The hike will be implemented retrospectively from July 1, 2025.
Arrears for July, August, and September will likely be paid along with the October salary, just before Diwali.
Reports suggest the increase will benefit around 11.6 million employees and pensioners.
Understanding DA and DR
DA (Dearness Allowance) and DR (Dearness Relief) are important parts of salaries and pensions.
They are designed to offset inflation and maintain purchasing power.
These allowances are reviewed twice a year, in January and July, which directly impacts employees’ and pensioners’ income.
Previous Increase
In March 2025, DA and DR were increased by 2%, effective from January 1, 2025.
The rate rose to 55%, and arrears for January to March were paid on time, giving relief to employees and pensioners.
Impact on Salary and Pension
If the 3% increase is approved:
Employees with a minimum basic salary of ₹18,000 (7th Pay Commission) will get an extra ₹540, making their total salary ₹28,440.
Pensioners receiving ₹9,000 will get an extra ₹270, raising their total pension to ₹14,220.
This timely increase, coming just before Diwali, is highly significant for both employees and pensioners.
