There is big good news for central government employees and pensioners. Before the festive season, the government is likely to announce a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR). This decision will give financial benefit to more than 1.2 crore central government employees and pensioners in the country.
When will it be announced?
The government may announce this in the first week of October. The DA increase will start from 1 July 2025. Employees will get money for July, August, and September with their October salary. This will bring happiness to families in the festive season.
How much will DA increase?
Right now, central government employees get 55% DA. After the 3% increase, it will be 58%. DA is based on the Consumer Price Index for Industrial Workers (CPI-IW) under the Seventh Pay Commission. This increase is based on CPI-IW data from July 2024 to June 2025.
Festive gift
The government usually raises DA two times a year, before Holi and Diwali. This year’s increase is a Diwali gift. The extra money will help employees buy things for the festival.
Who will get benefit?
- All central government employees
- Defence employees
- Railway employees
- Employees of other central departments
- Pensioners of central government
This DA increase will give more salary and help in savings. It will also help retirement benefits like PF and Gratuity. Overall, it will make employees happy and help the economy.