DA Hike Announced: Central Employees Get Triple Festive Boost with Pay Raise, Arrears, and Bonus

In a festive season delight for millions of government employees, the Central Government has announced a Dearness Allowance (DA) hike, along with a Diwali bonus for Group B and C employees. This decision, effective from July 1, 2025, will bring three major benefits to central staff — a higher DA, arrears for the past months, and a festival bonus — just in time for Diwali.

DA Increased from 55% to 58%

The Union Cabinet has approved a 3% increase in Dearness Allowance, taking it from 55% to 58% of the basic salary. The revised rate will be applicable from July 1, 2025, which means employees will also receive arrears for July to September along with their October salary.

This move is expected to significantly enhance the take-home pay during the festive season. Employees with a basic salary of ₹18,000 will see their DA rise by ₹540 per month and receive around ₹1,620 as arrears for three months.

Two DA Revisions Every Year

The government typically revises the DA twice a year — once in March and again during the festival season in September–October. Earlier this year, the government had raised DA by 2%, and with the latest revision, the total increase in 2025 stands at 5%.

The periodic revision of DA helps central employees and pensioners cope with inflation and maintain their standard of living. The hike also benefits lakhs of retirees who receive a Dearness Relief (DR) linked to the same percentage increase.

Diwali Bonus for Group B and C Employees

In addition to the DA hike, the Centre has also announced a Diwali bonus equivalent to 30 days’ salary for Group C and non-gazetted Group B employees. The bonus amount will be disbursed along with the October salary.

According to the Finance Ministry, this festive bonus is meant to acknowledge employees’ hard work and boost morale during the festive season. The government emphasized that such incentives are also aimed at increasing productivity and spreading positivity among the workforce.

Railway Employees Receive the Biggest Bonus

For the Indian Railways, the Diwali season has brought even bigger cheer. The government recently approved a Productivity Linked Bonus (PLB) equal to 78 days’ pay for railway staff. The bonus, disbursed before Dussehra, has given each eligible employee up to ₹17,951.

The PLB for railway workers recognizes their crucial role in maintaining operational efficiency and supporting the movement of goods and passengers across the country.

Impact of the DA Hike on Different Salary Levels

The increase in DA will reflect differently across pay scales. For example:

• A Secretary-level officer with a basic salary of ₹2,25,000 will see an increase of around ₹6,750 per month.

• A Group C employee, such as a peon or lower-division clerk with a basic salary of ₹18,000, will get an additional ₹540 per month.

These increments, combined with the arrears and bonuses, will make a noticeable difference in employees’ festive budgets this Diwali.

Government’s Gesture Ahead of Festivals

The Centre’s announcement comes as part of its annual festive season measures to support government employees and stimulate spending ahead of Diwali. With inflation easing in recent months, the additional income from the DA hike, arrears, and festival bonus is expected to boost overall consumer demand and festive cheer across the economy.

As a result, central employees can look forward to a triple festive reward — higher salaries, pending arrears, and special bonuses — making this Diwali extra bright for millions of government families.