The central government may soon give good news to its employees and pensioners. A 3% increase in dearness allowance (DA) is expected next month. If this happens, the current 55% DA will become 58%. This will be a relief for millions of employees and pensioners who wait for their salary and pension every month.
The extra money will be clearly seen in their income, and this Diwali may be more special for them. The central government changes DA two times in a year. The first change is for January to June, and the second is for July to December.
DA Hike for January–June and July–December
In March 2025, the government increased DA by 2% for January–June. It went from 53% to 55%. Now, a 3% hike is being talked about for July–December 2025. If this happens, about 1 crore workers and pensioners will get benefit.
DA changes salary and pension because it is counted on basic pay. For example, if a pensioner’s basic pension is ₹9,000, at 55% DA they get ₹4,950, so total pension is ₹13,950. At 58% DA, they will get ₹5,220, so total pension will be ₹14,220. This means ₹270 more every month.
Extra Benefit for Employees
If a worker’s basic salary is ₹18,000, at 55% DA they get ₹9,900, so total salary is ₹27,900. At 58% DA, they will get ₹10,440, so total salary will be ₹28,440. This means ₹540 more every month. This extra money will help in the festival time.
DA is fixed by the Consumer Price Index for Industrial Workers (CPI-IW), which shows price rise (inflation). The hike is not yet official, but most times it is announced after Navratri and before Diwali. This year also, workers and pensioners may get this gift before festivals.