DA Hike: Good news! Dearness Allowance for government employees increased, a big gift before Diwali

DA Hike Before Diwali: Central Government Approves 3% Increase in Dearness Allowance and Relief

The Central Government has given a festive gift to its employees and pensioners just ahead of Diwali. The Union Cabinet has approved a 3% hike in Dearness Allowance (DA) for serving employees and Dearness Relief (DR) for pensioners, benefiting nearly 1.18 crore individuals across India.

Union Minister for Information and Broadcasting Ashwini Vaishnaw confirmed the decision, stating that the increase will benefit 49 lakh central government employees and 69 lakh pensioners.

The revised DA and DR rates will be effective from July 1, 2025, with the additional expenditure estimated at ₹10,084 crore annually.

Double Celebration for Employees Ahead of Diwali

The timing of the announcement is significant as government employees and pensioners were eagerly awaiting the DA/DR revision before the festive season. Traditionally, such hikes are announced before major festivals like Diwali, providing employees extra financial support to cope with inflation and festive expenses.

Although there was a slight delay in the official notification this year, the decision has brought cheer to millions of families across the country.

Why DA and DR Matter

The government revises DA and DR twice a year — once in January and again in July. These revisions are directly linked to the inflation rate, ensuring that employees and pensioners are compensated for the rising cost of living.

• DA (Dearness Allowance) is added to the salaries of serving employees.

• DR (Dearness Relief) is given to pensioners, increasing their monthly pension to shield them from inflation.

The policy ensures that inflation does not erode the real income of central government employees and retirees.

How Much Extra Will Employees and Pensioners Get?

Under the 7th Pay Commission, the 3% DA hike will significantly boost monthly earnings and pensions:

• Employees drawing the minimum basic salary of ₹18,000 will see an increase of ₹540 per month, raising their total monthly salary to ₹28,440.

• Pensioners receiving the minimum pension of ₹9,000 will get an increase of ₹270 per month, pushing their pension to ₹14,220 under the new 58% DA/DR rate.

This adjustment will provide much-needed financial relief as household expenses rise during the festive season.

Previous DA Hike

Earlier in March 2025, the government approved a 2% hike in DA/DR, effective from January 1, 2025. At that time, the total DA stood at 55% of the basic pay/pension. With this latest revision, the rate has now increased to 58%, offering additional stability against inflation.

Railway Employees’ Bonus Approved

In addition to the DA/DR hike, the Union Cabinet has also approved a performance-linked bonus for railway employees. The bonus is expected to benefit lakhs of workers in the railways, one of the largest employers under the central government.

However, the Confederation of Central Government Employees and Workers (CCGEW) had expressed concern over the delay in announcing both the DA hike and the railway bonus. Traditionally, these announcements are made by the end of September, with disbursements beginning in early October. Despite the delay, the festive approval has been welcomed positively.

Final Takeaway

With this latest 3% increase, the Central Government has reaffirmed its commitment to protect employees and pensioners from inflationary pressures. The move not only strengthens the financial position of millions of households but also adds to the festive joy of Diwali.

Employees and pensioners can now look forward to higher salaries and pensions starting this festive season, making this year’s celebrations brighter and more financially secure.