This Diwali will be special for central government employees and pensioners. The government may give them two pieces of good news.
First, the Dearness Allowance (DA) may increase by 3 percent. Second, updates may come about the 8th Pay Commission. Currently, employees and pensioners get 55% DA. After the increase, it will become 58%.
Who Will Benefit
More than 12 million employees and pensioners will benefit from this increase. A salary rise during the festive season will also increase spending capacity. This is why the government often gives relief to employees around Dussehra and Diwali.
How DA Revisions Work
DA (Dearness Allowance) is revised twice a year:
- January to June
- July to December
In March 2025, the government increased DA by 2% for the January-June period. This raised DA from 53% to 55%. Now, a 3% increase is being considered for the July-December period.
Impact on Pensions
- DA affects both salary and pension because it is calculated on the basic salary or pension.
- For example, if a pensioner’s basic pension is ₹9,000, the current 55% DA gives ₹4,950. The total pension becomes ₹13,950.
- If DA rises to 58%, the DA becomes ₹5,220, making the total pension ₹14,220. This gives a benefit of around ₹270.
Why This Increase Matters
The DA increase, along with salary or bonus changes, brings relief to employees and pensioners during the festive season. In times of inflation, this rise helps their pockets and increases spending capacity. This move by the government is good news ahead of Dussehra and Diwali.
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