PM Narendra Modi-led central government has once again surprised millions of central government employees and pensioners. While the dearness allowance (DA) of employees covered under the 7th Pay Commission had already been decided, now the government has also given a bumper increase in the dearness allowance of employees receiving salary and pension under the 5th and 6th Pay Commissions. This decision has been taken through an official memorandum (Office Memorandum – OM) of the Finance Ministry. This decision is especially for those central employees and pensioners who are still receiving salary or pension under the rules of the 5th and 6th Central Pay Commission.
How much DA has increased
The dearness allowance (DA) for 5th Pay Commission employees has been increased from the current 466 percent to 474 percent. This is a direct 8% increase, which will be applied to their basic pay. Meanwhile, for 6th Pay Commission employees receiving salaries based on the pre-revised pay scale/grade pay, their DA has been increased from 252 percent to 257 percent, a 5 percent increase. These increased rates will be effective from July 1, 2025, meaning employees may receive arrears.
It’s worth noting that an increase in dearness allowance is usually news for 7th Pay Commission employees. However, many central government employees, especially those in some Central Autonomous Bodies (CABs) and Central Public Sector Enterprises (CPSEs), are still receiving salaries based on the recommendations of the 5th and 6th Pay Commissions. Dearness allowance is increased based on inflation to maintain employees’ purchasing power. The government has ensured that inflation does not affect all employees equally, regardless of which pay commission they fall under.
Relief of pensioners as well
This decision by the Central Government will also provide significant financial relief to thousands of pensioners receiving pensions under the 5th and 6th Pay Commissions. This decision by the Finance Ministry clearly demonstrates the government’s serious concern for the financial security of all central government employees and pensioners. This DA increase will brighten their upcoming Diwali even further.