3% DA Hike: Big news for central employees, DA will increase by 3%, know when it will be announced
This increase will be considered effective from July 2025, that is, employees and pensioners will also get arrears for three months from July to September, which is likely to be given with the salary of October.
7th pay commission: Before the festive season, the central government is going to give a gift to its employees and pensioners. According to sources, the central government is going to announce a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR). This decision will benefit more than 1.2 crore central employees and pensioners across the country. According to the information, its formal announcement can be made in the first week of October.
How much allowance is being given now
According to a report by Business Today, this time the government will make the announcement especially at the time of Diwali. So that employees and pensioners can get additional relief during the festive season. Let us tell you that after the amendment, the DA of the employees will increase from 55% to 58%. This increase will be considered effective from July 2025, that is, employees and pensioners will also get arrears of three months from July to September, which is likely to be given with the salary of October.
When is DA revision done?
The central government increases DA twice every year. First revision before Holi (for January-June period). Second revision before Diwali (for July-December period). Last year in October 2024, the government had announced to increase DA about 2 weeks before Diwali. This year Diwali is on 20-21 October 2025 and in view of that, it is being considered as a festive gift for the employees.
How is DA decided?
DA is calculated on the basis of Industrial Workers Consumer Price Index (CPI-IW) under the 7th Pay Commission. Its formula is based on the CPI-IW average of 12 months. The CPI-IW average from July 2024 to June 2025 was 143.6, on the basis of which the DA rate has been fixed at 58%. That is, now the dearness allowance of central employees and pensioners will increase by 3% to 58%, which will give financial relief to millions of families and additional benefits during the festive season.
When is DA revision done?
The central government increases DA twice every year. First revision before Holi (for January-June period). Second revision before Diwali (for July-December period). Last year in October 2024, the government had announced to increase DA about 2 weeks before Diwali. This year Diwali is on 20-21 October 2025 and in view of that, it is being considered as a festive gift for the employees.
How is DA decided?
DA is calculated on the basis of Industrial Workers Consumer Price Index (CPI-IW) under the 7th Pay Commission. Its formula is based on the CPI-IW average of 12 months. The CPI-IW average from July 2024 to June 2025 was 143.6, on the basis of which the DA rate has been fixed at 58%. That is, now the dearness allowance of central employees and pensioners will increase by 3% to 58%, which will give financial relief to millions of families and additional benefits during the festive season.
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