DA for central government employees and pensioners and pensioners will be raised by 3% DA, media news reports state. The announcement had been slated to land in the festival season so that those who had elderly hardships depending on the DA before its update under the 7th Pay Commission would stand financially supported.
Rise In DA: From 55% to 58%, With Arrears
The DA hike will raise the DA from 55% to 58% of the basic pay. The DA hike is proposed to be effective from July 2025. With this hike, the employees and pensioners should get the arrears for three months from July to September, to be paid along with the salary and pension of October.
Announcement Timeframe
The formal announcement should come in the first week of October 2025. It will probably be declared even before Dussehra or Diwali, so that the festival-period income surge may come handy.
How Is The DA Calculated
The DA is revised bi-annually every 1st January and 1st July so as to consider inflation. After all, this increase was based upon the data from the Consumer Price Index- Industrial Workers (CPI-IW). The average CPI-IW over the period from July 2024 to July 2025 stood at 146.3. According to the formula laid down by the 7th Pay Commission, the said measure of inflation would warrant a DA hike of 3 per cent.
Who Are The Beneficiaries
Over 12 million Central Government employees and pensioners stand to gain from this hike. Besides the monthly increment, the arrears of July to September will provide most of the relief monetarily.
Why Now
Giving the DA hike now would, therefore, be really crucial. Inflation, at the moment, is exerting pressure on household incomes, and to expect such relief just before the festivals would be in the spirit of the people. The announcement has been long-awaited by employees and pensioners and will surely be welcomed.
Also Read: DA Arrear News 2025: Check Expected Hike, Pending Dues And Payment Dates