DA Hike: Modi government's big gift to central employees ahead of Dussehra, 3% increase in DA

DA Hike: The Modi government has given a big gift to central government employees and pensioners ahead of Dussehra and Diwali. The Cabinet has approved a 3% increase in dearness allowance (DA) and dearness relief (DR). This increase will be effective from July 1, 2025, and will also be paid with the October salary, along with the arrears for July and September. This will benefit 4.8 million employees and 6.8 million pensioners. Experts believe this could be the last revision of the 7th Pay Commission.

DA Hike: The Modi government at the Centre has given a big gift to millions of employees across the country ahead of Dussehra. The Union Cabinet on Wednesday approved a 3% increase in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners. This decision brings major relief to employees and pensioners ahead of Dussehra and Diwali.

Increase in Basic Pay and Pension

With the government's increase, the basic pay and pension rates have increased from 55% to 58%. The benefits of the increase will be effective from July 1, 2025. The arrears for July, August, and September will be adjusted in the October salary before Diwali. This will provide direct financial relief to millions of families during the festive season.

Benefits under the 7th Pay Commission

This Dearness Allowance (DA) increase will be applicable to all central government employees, pensioners, and family pensioners covered under the 7th Pay Commission. It is estimated that 4.8 million employees and 6.8 million pensioners will directly benefit from this decision.

Employees with a basic salary of ₹30,000 will receive an additional ₹900 per month. Those with a basic salary of ₹40,000 will receive an additional ₹1,200 per month. Thus, the three-month arrears amount to ₹2,700 to ₹3,600, which will reach employees as an additional bonus during Diwali.

Basis for Determining Dearness Allowance

Dearness Allowance (DA) and Dearness Relief (DR) rates are determined in January and July each year. Data from the All India Consumer Price Index for Industrial Workers (CPI-IW) is used for this. Although the official announcement is often delayed, the payment of arrears ensures full benefits for employees and pensioners.

Relief Before the Festivals

This government move will prove to be a major relief package for employees and pensioners amid inflationary pressures during the festive season. The additional cash available before Diwali will facilitate household expenses and shopping.

Final Revision of the 7th Pay Commission

According to experts, this could be the final revision under the 7th Pay Commission. The 8th Pay Commission is expected to be implemented from January 2026, setting a new structure for employee pay and allowances.

Economic Impact and Government Expenditure

This increase will also impose an additional financial burden on the central government. However, experts believe that this will increase the purchasing power of government employees, boosting market demand and further accelerating economic activity during the festive season.

Dussehra Gift for Government Employees

The Modi government's decision to increase dearness allowance by 3% before Dussehra and Diwali is a significant gift to employees and pensioners. This will not only increase their income but also strengthen their financial position during the festive season. Employees are expected to receive further benefits when the 8th Pay Commission recommendations are released in the coming months.

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