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The central government may give relief news for central employees and pensioners just before Diwali. It is believed that an increase of 3% in Dearness Allowance (DA) and Dearness Relief (DR) will be announced soon. This increase will be considered effective from July 2025, and arrears of the last three months can also be found in the salary or pension of October.

Let us tell you that the government revises DA twice a year. The first revision is before Holi (for January‑June) and the second before Diwali (for July‑December). This year, Diwali is on 20‑21 October, and it is believed that this increase can be announced in the first week of October. Last year, the government announced a DA hike on October 16, about two weeks before Diwali.

How much will DA increase?

After the new increase, DA will increase from 55% to 58%. This change will be applicable from July 2025, and 3 months' arrears will be paid together in October's salary. Under the 7th Pay Commission (7th CPC), DA is calculated using a fixed formula. In this, the average of CPI-IW (Consumer Price Index for Industrial Workers) of the last 12 months is taken. The average from July 2024 to June 2025 came to 143.6, on the basis of which the new DA has come out to be 58%.

How much will be the benefit?
If the basic salary of an employee is Rs 18,000, then he used to get Rs 9,900 on 55% DA. Now this amount will be Rs 10,440 on 58% DA. That is, Rs 540 more every month. Similarly, if the basic pension of a pensioner is Rs 20,000, then he will get about Rs 600 extra. This will be the last DA hike of the 7th Pay Commission. The tenure of this commission will end on 31 December 2025.

This hike is special because it will be the last hike under the 7th Pay Commission. The tenure of this commission is ending on 31 December 2025. The process of the 8th Pay Commission has already started.

Now it is the turn of the 8th Pay Commission?

The 8th Pay Commission (8th CPC) was announced in January 2025, but its Terms of Reference (ToR), appointment of chairman, and members are yet to be done. It is believed that it may take about 24 months to implement this entire process. That is, the new salary structure will be implemented in late 2027 or early 2028. It is estimated that the 8th Pay Commission can increase the salary significantly.

More than 1.2 crore employees and pensioners will benefit from this preparation of the government. If the government announces DA hike then it will prove to be a big gift for them just before Diwali.

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