The central government has announced a hike in dearness allowance (DA) for central government employees and pensioners under the 5th and 6th Pay Commissions. This decision came just before Diwali and has made employees and pensioners happy. Last week, the government also announced a DA increase for employees under the 7th Pay Commission. The Finance Ministry shared this news.

According to the Finance Ministry, the DA of employees working under the 5th Pay Commission has been increased from 466 percent to 474 percent or a rise of 8 percent DA. The effective date would be from July 1, 2025, though the 5th Pay Commission was terminated in December 2005 and many employees/pensioners are being paid under the 5th Pay Commission scales.

Increase under the 6th Pay Commission

The dearness allowance (DA) for employees working under the 6th Pay Commission increased from 252 percent to 257 or a rise of 5 percent DA. The DA will be effective from July 1, 2025. The 6th Pay Commission terminated in 2015 when the 7th Pay Commission began.

Recent Increase under the 7th Pay Commission

A few days ago, the government raised the DA for employees under the 7th Pay Commission by 3 percent. This increase benefits about 49.19 lakh central government employees and 68.72 lakh pensioners.

Why is DA increased

The government reviews the DA two times every year, in January and July. This is done to help employees and pensioners with rising prices. This announcement, coming during the festive season, is like a bonus or extra salary for employees.