DA Hike Update: Before Diwali, the central government may bring good news for its employees and pensioners. Dearness Allowance (DA) could increase to 58% next month.
There is a strong possibility of a 3% hike in DA for the July–December 2025 period.
If this happens, the current DA of 55% will go up to 58%. This will directly affect the salary and pensions of millions of people.
DA is Revised Twice a Year
The government revises the Dearness Allowance twice a year—once for the January–June period and again for July–December.
For example, in March 2025, the government had increased DA by 2%, taking it from 53% to 55% for the January–June term. Now, for the July–December 2025 period, a 3% increase is expected.
How Will It Affect Salary and Pension?
Since DA is calculated on the basic salary or pension, the increase amount varies from person to person.
For example, if a pensioner has a basic pension of ₹9,000, then at 55% DA, they currently receive ₹4,950. So, their total pension becomes ₹13,950.
After the expected 58% DA hike, they will get ₹5,220, making the total ₹14,220—a benefit of ₹270.
Similarly, an employee earning a basic salary of ₹18,000 currently gets ₹9,900 as DA (55%), making the total salary ₹27,900.
With 58% DA, the DA amount will increase to ₹10,440, and the total salary will become ₹28,440—an increase of ₹540 per month.
How is DA Calculated?
DA is calculated using a fixed formula based on the Consumer Price Index for Industrial Workers (CPI-IW). The index reflects changes in the cost of living, and DA is revised accordingly.
When Will the DA Hike Be Announced?
Although there has been no official confirmation yet, based on past trends, the government usually announces the DA hike after Navratri and before Diwali.
If that pattern continues, central government employees and pensioners can expect the 3% DA hike to be announced soon—just in time to make this Diwali even more joyful with extra money in their hands.
