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The central government has announced good news for employees and pensioners. From September 2025 the government will increase Dearness Allowance (DA) and Dearness Relief (DR) to give financial support at a time when prices are rising. The hike is expected to be around 6 per cent and in some cases it may even go up to 7 per cent according to various media reports. This means higher salaries for government employees and better pensions for retired staff. DA is revised twice every year based on the Consumer Price Index (CPI) to balance the impact of inflation. The new increase will directly improve take-home pay and pension amounts. Along with this the government has also planned some extra benefits for senior pensioners ensuring they get additional support in old age. The government has finally responded to the long-standing demand of employee unions and pensioner groups for a bigger Dearness Allowance (DA) to deal with rising prices. The new 6 per cent hike will help more than one crore central government employees and pensioners including those working in public sector units and autonomous bodies. The DA hike will be given as a percentage of the basic salary or pension so everyone from lower to higher pay scales will benefit in proportion. Officials have said the final increase will be between 4 per cent and 6 per cent and a notification will be issued in September 2025. Any arrears will also be added directly to employees’ and pensioners’ bank accounts. How it will help For employees the increase means more money in hand every month. For example someone with a basic salary of Rs. 50000 will get about Rs. 3000 extra every month with a 6 per cent DA hike. This will make it easier to manage expenses like food fuel and healthcare. Pensioners will also gain as the same hike applies to Dearness Relief (DR) on pensions. Since many retirees depend fully on their pensions this raise will help them maintain their purchasing power and cope with inflation. Increase in Old-Age Pension Until now eligible senior citizens were getting only Rs. 400 per month under the old-age pension scheme. Seeing that this amount was too low in today’s times the government has decided to raise it to Rs. 1100 per month. This change will take effect from July 11 2025 and is meant to give better financial support to elderly people especially those from economically weaker families.