As the festive season nears, over 1 crore central government employees and pensioners are waiting for the government’s next big announcement.
After giving GST relief to the public, the government is now expected to increase Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners.
Based on the latest inflation data and recommendations of the 7th Pay Commission, the government may soon declare the hike, which will provide financial relief to both employees and pensioners.
Current DA/DR Status
In March 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 2% hike in DA and DR under the 7th Pay Commission.
This revision became effective from January 1, 2025, and employees also received arrears from that period.
Currently, central employees and pensioners are receiving 55% DA/DR.
Minimum basic salary of employees: ₹18,000
Minimum pension for pensioners: ₹9,000
With 55% DA/DR included:
Employees’ minimum monthly salary: ₹27,900 (Basic + DA)
Pensioners’ minimum pension: ₹13,950 (Basic + DR)
The government revises DA/DR twice a year — in January and in July.
Expected Next Increase
Going by past trends, the next DA/DR hike is expected in September 2025. Some reports suggest the official announcement may come by late September or early October.
This time, there is a strong possibility of a 3% hike, which would raise the DA/DR from 55% to 58%.