Central government employees and pensioners may soon get festive season relief with a 3% DA and DR hike. The Cabinet decision is expected in mid-October, effective from July 2025.
The wait for a Dearness Allowance (DA) and Dearness Relief (DR) hike under the 7th Pay Commission may soon be over. Reports suggest that the government is likely to announce a 3% increase before Diwali, raising the rate to 58%. This move will benefit both employees and pensioners, with arrears also expected.
7th Pay Commission: Central Employees Await DA and DR Hike
Central government employees and pensioners are eagerly waiting for the government’s decision on the increase in dearness allowance (DA) and dearness relief (DR). Usually, such announcements are made around the festive season to provide relief from inflation. However, this time, the notification has been delayed, which has further raised curiosity among employees and pensioners.
Possible Cabinet Meeting and DA/DR Announcement
According to media reports, the Union Cabinet may take up the matter in mid-October. Experts believe the government could announce the hike before Diwali to provide festive season relief. Reports suggest that DA/DR may rise by 3%, increasing the rate from 55% to 58%. If approved, the new rate will be applicable from July 2025. In addition, arrears for the past period may also be credited to the December or October salary.
What are DA and DR?
DA and DR form an essential component of salaries and pensions for central employees. Their main purpose is to balance the impact of rising inflation and help maintain purchasing power. The government revises these twice a year, in January and July, which directly affects the monthly income of employees and pensioners.
How much was the last increase?
In March 2025, the government announced a 2% hike effective from January 1, 2025, taking the total rate to 55%. At that time, arrears from January to March were also paid, offering timely financial relief.
How much will salaries increase?
If a 3% hike is approved, employees with a basic salary of ₹18,000 will get an additional ₹540 per month, raising their total salary to ₹28,440. Pensioners drawing a minimum pension of ₹9,000 will see an increase of ₹270, taking their total to ₹14,220. This festive season update is highly awaited by employees and pensioners alike.
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