DA Hike: Millions of central government employees and pensioners are eagerly awaiting the announcement of DA/DR. DA is revised twice every year, and the second revision is yet to take place. In this regard, the Confederation of Central Government Employees and Workers has written to Finance Minister Nirmala Sitharaman, demanding her immediate intervention.
The union has said in the letter, ‘Your attention is drawn to the non-declaration of the due installment of DA/DR from 01-07-2025, usually it was announced in the last week of September and the arrears of three months were given in the first week of October.’ The letter further said that there is dissatisfaction among the employees and pensioners regarding the delay in the announcement.
When is DA/DR announced?
The government announces DA for employees and DR for pensioners twice a year (in March for the first half (January to June) and in September/October for the second half (July to December). Generally, the DA revision for the second half of the year is announced in the last week of September or the first week of October, i.e. around Diwali. In any case, employees receive two or three months’ arrears along with the increased salary or pension.
Now, with just a few days left before the end of the month, employees are hoping the government will announce a DA increase so they can receive their September salary along with arrears.
How is DA calculated?
DA is calculated using a formula based on the All India Consumer Price Index for Industrial Workers (CPI-IW). According to our partner Financial Express, DA (%) = [(Average of CPI-IW for the last 12 months – 261.42) ÷ 261.42] x 100. The Consumer Price Index (CPI) is released by the Labour Bureau and tracks inflation, helping maintain the real income of employees and pensioners. The base year for the current calculation is 2016.
