Millions of central government employees and pensioners across the country are eagerly awaiting the announcement of DA/DR (Dearness Allowance and Dearness Relief). Dearness Allowance is revised twice every year, and the second half revision is still pending. In this regard, the Confederation of Central Government Employees and Workers has written to Finance Minister Nirmala Sitharaman, demanding immediate intervention.
The Confederation stated in its letter, “We draw your attention to the non-announcement of the DA/DR installment due from 01-07-2025. This is usually announced in the last week of September, and the three-month arrears are paid in the first week of October.” The letter further stated that there is a sense of dissatisfaction among employees and pensioners regarding the delay in the announcement.
When is DA/DR announced
The government announces dearness allowance (DA) for employees and dearness relief (DR) for pensioners twice a year. For the first half (January to June), it is announced in March, and for the second half (July to December), in September/October, usually around Diwali.
Employees typically receive two or three months’ arrears along with the increased salary or pension. With just a few days left before the end of the month, employees are hoping the government will announce the DA increase soon so they can receive their arrears along with their September salary.
How is DA calculated
DA is calculated using a formula based on the All India Consumer Price Index (CPI-IW) for industrial workers. According to our partner Financial Express, DA (%) = [(Average CPI-IW for the last 12 months – 261.42) ÷ 261.42] x 100. The Consumer Price Index (CPI) is released by the Labor Bureau and tracks inflation, helping maintain the real income of employees and pensioners. The base year for the current calculation is 2016.
Questions were also raised about the festive season and bonuses
The Confederation of Central Government Employees and Workers also stated that with the Durga Puja festival approaching, the Productivity Linked Bonus (PLB) and bonuses should also be announced. The letter demanded that the government issue immediate orders so that employees and pensioners can get relief before the festival. The letter stated that the union seeks your immediate intervention in the above matter and requests you to announce/issue the DA/DR order and bonus order promptly.
Delay in the 8th Pay Commission Increases Frustration
The long wait for the formal notification of the 8th Pay Commission and the formation of the panel continues, leading to growing frustration among employees. The formal formation process has taken slightly longer this time than in previous commissions. The Dearness Allowance (DA) increase for July-December 2025 will be the last revision announced under the 7th Pay Commission, whose term is expected to end on December 31, 2025. Employees are deeply disappointed by the delay in the DA and are demanding immediate action.