New Delhi, Sept 9, 2025:
In a festive season boost, the Modi government is set to bring cheer to more than 1.2 crore central employees and pensioners across the country. According to sources, the Centre is preparing to announce a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) in the first week of October.
When Will It Apply?
The proposed increase will be applicable from July 2025, ensuring that employees and pensioners also receive arrears for three months, likely credited with the October salary or pension payout.
How Much Will DA Increase?
Currently, the DA rate stands at 55%. After the expected 3% hike, it will reach 58%. Depending on pay scales, this increase could mean an additional ₹1,500 to ₹10,000 in monthly salaries and pensions.
Twice-a-Year Hike Tradition
The central government revises DA twice every year:
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January–June period (announced before Holi)
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July–December period (announced around Diwali)
In 2024, the DA hike was announced on 16 October. With Diwali falling on 20–21 October this year, employees may receive this financial gift just in time for the festival.
Why the 3% Hike?
The increase is based on data from the All-India Consumer Price Index (AICPI), which tracks inflation trends and directly influences DA calculations.
If implemented, this move will not only cushion central government employees and pensioners against rising prices but also boost festive season demand across markets.
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