DA Hike 2025: The Union Cabinet made several announcements on September 24th. Central employees and pensioners were eagerly anticipating these announcements, but nothing came of them.
Central employees have long been waiting for an increase in dearness allowance (DA) and dearness relief (DR) before Dussehra or Diwali. Now, the lack of discussion on this issue in the Cabinet meeting has caused disappointment among central employees. The Cabinet has made several major announcements, including the approval of infrastructure projects.
In fact, dearness allowance is fixed twice a year. Its calculation is based on the inflation rate of 12 months and a prescribed formula. According to the Labor Bureau, the All-India CPI-IW (Industrial Workers Consumer Price Index) for June 2025 increased by 1 point to 145. In January 2025, the government increased DA by only 2 percent, increasing it from 53 percent to 55 percent. At that time, central employees were disappointed.
CCGEW wrote a letter to the Finance Minister
According to a report published in NDTV, the Confederation of Central Government Employees & Workers (CCGEW) wrote a letter to the Finance Ministry on September 23rd. It stated that the delay in the DA-DR hike was causing growing dissatisfaction among employees and pensioners. CCGEW General Secretary SB Yadav wrote, “I would like to draw your attention to the non-announcement of the pending installment of DA/DR, effective July 1st. This announcement is usually made in the last week of September, and the three-month arrears are paid in the first week of October.”
The delay in the announcement has caused widespread dissatisfaction among employees and pensioners. Yadav further wrote that, as Dussehra approaches, the PLB and ad hoc bonuses are also due to be announced. The Confederation requests your immediate intervention in this matter and the timely announcement/issuance of the DA/DR order and bonus orders.
What will be the impact on employees and pensioners?
The increase in dearness allowance directly impacts the salaries of central government employees and the pensions of pensioners. For example, if an employee’s basic salary is ₹40,000 and the DA increases from 55% to 58%, their monthly DA amount will increase from ₹22,000 to ₹23,200. This means their salary will increase by ₹1,200 per month. Furthermore, the DA increase also increases other allowances such as travel allowance (TA) and house rent allowance (HRA), further increasing the employee’s total income. This increase is also significant because the DA increase for January-June 2025 was only 2%, the lowest in the last seven years.
Know what is dearness allowance
Dearness Allowance (DA) is an additional salary addition provided by the government to its employees to cushion them from inflation. Its purpose is to mitigate the impact of rising prices. Dearness Relief (DR) is provided to pensioners to provide similar relief.
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