The Central Government has approved a significant 3% increase in Dearness Allowance (DA) ahead of the implementation of the 8th Pay Commission, increasing your DA to 58%. This is considered the final increase under the 7th Pay Commission, as the 7th Pay Commission expires in December 2025. This historic decision, taken just before major festivals like Dussehra and Diwali, is a strong step towards financial independence for central employees. Let’s find out how much this 3% increase will add to your pocket.
3% DA Increase
The Central Government has announced this significant increase at a time when employees already received a 2% increase in March. This unprecedented 3% increase directly translates into an additional 3% increase in your basic salary.
Salary Hike
If you receive a minimum basic salary of ₹18,000 under the 7th Pay Commission, this 3% increase will add approximately ₹540 to your monthly income as DA, bringing your total DA to ₹10,440 (previously ₹9,900). After this significant increase, the total salary of employees with the minimum basic salary will increase to ₹28,440.
Similarly, if an employee’s basic salary is ₹25,500, their DA will increase by ₹765, taking their total DA to ₹14,790 (previously ₹14,025). Meanwhile, a Section Officer with a basic salary of ₹56,100 will see his DA increase by ₹1,683, taking his total to ₹32,538. To take another example, an employee with a basic salary of ₹60,000 was receiving ₹33,000 DA after the March hike, which will now increase to ₹34,800.
Bumper Payout for Increased Salary from November
This significant DA hike will be effective from July 2025, but employees will begin receiving the increased salary from their November salary. The salary received from November will include the increased DA, significantly increasing your monthly income. Central employees will also receive three months’ arrears.
These arrears will be for July, August, and September, which will be added to the October salary. Employees typically receive their salaries on the last day of the month, so the October salary payment may be made between October 31st and the beginning of the following month.
Waiting for the 8th Pay Commission
This significant increase is not only for central employees but will also directly benefit pensioners. Pensioners receiving a minimum pension of ₹9,000 will receive an additional benefit of ₹270, taking their total pension to ₹14,220 at a revised rate of 58%. This provides significant financial security for senior citizens.
The 8th Pay Commission was announced in January, entailing further revisions in salaries and allowances. However, the official notification, which will detail its members and tenure, is still pending. This DA hike is an excellent effort to make the upcoming festivals even more enjoyable for central employees.