7th Pay Commission: When will central employees receive dearness allowance? A major update has emerged..
Millions of central government employees and pensioners are eagerly awaiting the announcement of DA/DR (Dearness Allowance and Dearness Relief) from the central government. DA is revised twice every year, and the second revision is yet to take place. In this regard, the Federation of Central Government Employees and Workers has written to Finance Minister Nirmala Sitharaman, demanding her immediate intervention. The organization stated in the letter that it would like to draw their attention to the non-announcement of the DA/DR installment due from 01-07-2025. Usually, it is announced in the last week of September, and the three-month arrears are paid in the first week of October. The letter further stated that there is "serious dissatisfaction" among employees and pensioners regarding the delay in the announcement.
When is DA/DR announced?
The government announces DA for employees and DR for pensioners twice a year: in March for the first half (January to June) and in September/October for the second half (July to December). DA revisions for the second half of the year are usually announced in the last week of September or the first week of October. In general, employees receive two or three months' arrears along with the increased salary or pension. With just a few days left before the end of the month, employees are hoping the government will announce a DA increase so they can receive their September salary along with arrears.
How is DA calculated?
DA is calculated using a formula based on the All India Consumer Price Index for Industrial Workers (CPI-IW). The formula is: DA (%) = [(Average CPI-IW for the last 12 months – 261.42) ÷ 261.42] x 100. The Consumer Price Index (CPI) is released by the Labor Bureau and monitors inflation, helping to maintain the real income of employees and pensioners. The base year for the current calculation is 2016.
Questions about the festive season and bonuses
The Confederation of Central Government Employees and Workers also stated that with the Durga Puja festival approaching, the Productivity Linked Bonus (PLB) and ad hoc bonuses should also be announced. The letter demanded that the government immediately issue orders so that employees and pensioners can get relief before the festival. The Confederation seeks your immediate intervention in the above matter and requests you to please issue timely orders for the announcement/issuance of the DA/DR order and bonus order.
Delay in the Eighth Pay Commission
Meanwhile, employees are still waiting for the formal notification of the Eighth Pay Commission and the formation of the panel, frustrating them. Compared to previous commissions, the formal formation process has been a bit longer this time. According to the government, the 8th Pay Commission is scheduled to be implemented from January 1, 2026. Under this commission, central employees' salaries are expected to increase by 30 to 34 percent.
Bonus Announced for Railway Employees
Providing major relief to approximately 1.1 million non-gazetted railway employees, the Union Cabinet on September 24 announced a Performance-Based Bonus (PLB) equivalent to 78 days' salary. According to a PIB release, the payment of this bonus will cost the central government treasury approximately ₹1,866 crore. In recognition of the outstanding performance of railway employees, the Union Cabinet approved ₹1,865.68 crore for 10,91,146 railway employees. The Center provides PLB to eligible employees every year before the Durga Puja/Dussehra holidays.
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