DA Hike 2025: The festive season has begun in the country, and Diwali is approaching. Central government employees and pensioners are eagerly awaiting the announcement of an increase in their dearness allowance and dearness relief (DR Hike). DA/DR hikes are announced twice a year, and the announcement of the second installment for 2025 is still pending.
This time, it is expected that the government may give a significant gift to central government employees and pensioners before Diwali. If this increase is announced, millions of employees and pensioners will directly benefit from their salaries. According to experts, this year’s DA hike could increase by approximately 3%, which will increase the monthly and annual income of employees and pensioners. This increase will not only provide financial support to employees but also give them a reason to celebrate this festive season.
The Confederation of Central Employees and Workers has written to Finance Minister Nirmala Sitharaman, urging her to take a decision on the DA/DR hike as soon as possible. DA hikes are given twice a year. This year’s first hike was implemented in January, while the installment for July 1, 2025, is still pending. According to a report, the July 1 DA/DR hike is usually announced in the last week of September, and the three-month arrears are disbursed to employees in the first week of October. This delay is raising concerns among central government employees and pensioners.
How many employees and pensioners will benefit?
It is estimated that this time the dearness allowance may increase by 3%. If this happens, approximately 50 lakh central employees and 65 lakh pensioners will benefit. In January 2025, DA/DR was increased by 2%, taking it from 53% to 55%. This time, after a 3% increase, it will reach 58%.
Method of DA calculation
Dearness Allowance (DA) is a significant component of an employee’s salary. It is determined by the government based on the Consumer Price Index for Industrial Workers (CPI-IW). The average CPI-IW for the previous 12 months is used to calculate DA according to the 7th Pay Commission formula.
How much will the salary increase be?
If there’s a 3% increase this time, central government employees will see a significant increase in their salaries. For example, assume an entry-level employee’s basic salary is Rs 18,000. Currently, they receive Rs 9,900 based on 55% DA, but if DA increases to 58%, this amount will increase to Rs 10,440. This means the employee will receive an additional benefit of Rs 540 per month and Rs 6,480 annually, which will help with festive expenses and general living expenses.