The central government has once again given some of its employees and pensioners the gift of a dearness allowance (DA) increase. This gift is for those employees who fall under the 5th and 6th Pay Commissions.
The DA rate revision has been announced for such employees. It should be noted that just last week, an increase in DA was announced for employees under the 7th Pay Commission.
How much did the increase
According to the Finance Ministry’s order, the DA of employees receiving salaries under the 5th Pay Commission has been increased from 466% to 474%, representing an 8% increase. This revised rate will be effective from July 1, 2025. Simply put, these employees will now receive a dearness allowance at the rate of 474% of their basic pay.
The 5th Pay Commission’s term ended in December 2005. Following this, the 6th Pay Commission was formed for the next 10 years. Under this, the DA of employees receiving salaries has been increased from 252% to 257%. This increase will also be effective from July 1, 2025. It should be noted that the recommendations of the 7th Pay Commission were not implemented from January 2006 to December 2015.
There are some central autonomous institutions and public sector undertakings where the recommendations of the 7th Pay Commission have not been implemented. Employees of these institutions still fall under the 5th or 6th Pay Commission pay structure.
How much increase under the 7th Pay Commission
Recently, the Union Cabinet, giving a Diwali gift, increased the DA and DR by three percent for about 49.19 lakh central government employees and 68.72 lakh pensioners. Till now, DA and DR were 55 percent of the basic pay/pension and the three percent increase in it is effective from July 1, 2025. The increase in DA and DR will have a total annual impact of Rs 10,083.96 crore on the exchequer. It is worth noting that the Centre revises DA and DR twice a year. The last revision announced in March was effective from January 1.
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