DA Hike Update – Big news for central government employees. Central government employees and pensioners are eagerly awaiting the upcoming Dearness Allowance (DA) and Dearness Relief (DR) increases. The government typically announces these increases around festive seasons to provide relief to employees from rising inflation. However, this time the notification has been delayed, further fueling the excitement among employees and pensioners.

Possible cabinet meeting and DA/DR announcement

According to media reports, a Cabinet meeting regarding this year’s DA/DR increase is expected to take place in mid-October. Experts predict that the increase may be announced before Diwali to provide relief to employees during the festive season. Some media reports also suggest a 3% increase, raising the DA/DR rate from 55% to 58%. If this happens, the new rate will be effective from July 2025, and arrears from the previous period may also be added to the December or October salary.

What is DA and DR?

DA and DR are a significant component of government salaries and pensions. Their purpose is to cushion the impact of inflation and maintain purchasing power. The government reviews them twice a year (in January and July). Consequently, every six months, there is a direct impact on the incomes of employees and pensioners.

What was the last increase?

In March 2025, the central government increased DA and DR by 2%, effective January 1, 2025. This increase brought the rate to 55%. At that time, arrears for January to March were also paid on time, providing relief to employees and pensioners.

How much will the salary increase?

If this 3% increase occurs, the monthly income of an employee earning a minimum basic salary of Rs 18,000 under the 7th Pay Commission will increase by approximately Rs 540, bringing their total salary to Rs 28,440. Meanwhile, pensioners earning a minimum pension of Rs 9,000 will see their pension increase by Rs 270, bringing their total salary to ₹14,220. This is why this announcement before Diwali is considered extremely important for employees and pensioners.