7th Pay Commission DA Hike 2025 : The festival of Diwali brings joy and excitement across the country. This time the occasion is going to be even more special for central employees and pensioners.
The government has prepared to increase the dearness allowance before Diwali. The new revision is expected to provide additional financial benefits to lakhs of families during the festive season.
According to sources, the central government is going to increase the dearness allowance (DA) of employees and pensioners by 3% from July 2025. This change will be applicable on the salary and pension received in October. Three months’ arrears will also be included, which will make the festival of Diwali even more special for government employees and retirees.
3% increase in dearness allowance
Central employees and pensioners currently get 55% dearness allowance. As per the government’s plan, it will be increased by 3% from July 2025. This means that employees will now get 58% dearness allowance. This amendment will directly increase the monthly income of employees.
If an employee’s minimum wage is ₹18,000, they get ₹9,900 at the current 55% DA. With the new 58% DA, this amount will increase to ₹10,440. Similarly, pensioners will get an additional monthly allowance, which will further improve their financial situation during the festive season.
When and why is dearness allowance revised?
Dearness Allowance is directly linked to the Consumer Price Index (CPI). The government revises it twice a year. The first revision is applicable from January to June, while the second revision is for July to December. Thus, DA is considered based on the inflation rate.
The average Consumer Price Index (CPI) this year till June 2025 was 143.6, based on which the new rate of Dearness Allowance has been fixed at 58%. Its aim is to balance the income of employees and pensioners amidst rising inflation so that they can easily bear the cost of living.
