Government employees and pensioners could be gifted good news just before Diwali! The central government might be announcing a 3% hike in DA. On approval, the DA would move from its present 55% of basic salary/pension to 58%. Nearly 1 crore central employees and pensioners stand to benefit from this DA hike, providing some financial alleviation to them as a celebratory gesture.
When Does The New Percentage Of DA Become Applicable & Arrears
The increase is likely with effect from July 2025 and the government averagely seeks to issue the notification sometime in early October, ahead of Diwali. Alongside the hike, arrears for the months of July, August, and September 2025 are expected to be paid along with the salary or pension for October.
Present DA Cycle & Frequency Of Hikes
Normally, the government revises the DA twice every year: once for the period from January to June and once for July to December. The DA was increased by 2% in March 2025, thereby raising the rate from 53% to 55% for the period from January to June. The hike now being discussed will relate to the July to December period.
What This Means For Wages And Pensions
For an illustration: A Central Government employee with a Basic pay of ₹18,000 currently gets a DA of ₹9,900 at 55%. If this were increased to 58%, the DA would come to around ₹10,440. Therefore, the employee would stand to make another ₹540 per month. Likewise, pensioners with a basic pension of ₹20,000 will stand to gain around ₹600 per month.
Final DA increase under The 7th Pay Commission And The pending 8th Pay Commission
This hike in DA is considered to be its last revision under the 7th Pay Commission, which has its validity running till 31 December 2025. While the process for the 8th Pay Commission is underway, salary and allowance structures as assessed have not yet come into force. Employees and pensioners alike are scrutinizing the developments, expecting an official announcement in the coming weeks.
What Employees Have To Do
- Keep abreast with official announcements emanating from the Finance Ministry or Department of Expenditure.
- Check the pay slips as soon as the hike is declared for the correct percentage (58%) and arrears.
- Ensure all personal information (basic pay, pension details) are updated in records to avoid any delay.
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