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Government employees have been waiting for a long time for a dearness allowance (DA) hike. It was previously rumored that employees might receive the gift before Diwali. Sources indicate that the date for the dearness allowance hike has been confirmed. Let’s find out when the dearness allowance hike will occur and how much will employees’ salaries increase?
Government employees have been waiting for a long time for a hike in their dearness allowance. According to media reports, the dearness allowance was supposed to increase before Diwali. Sources also revealed the same information.
DA Hike: When will the dearness allowance increase?
According to sources, the dearness allowance hike is expected on the first of next month, i.e., October 1st. Media reports suggest that this time the dearness allowance may increase by 3 to 4 percent. Currently, the dearness allowance is 55 percent, which will increase to 58 to 59 percent.
Now let us know how much will the salary of employees increase due to the increase of 3 percent in dearness allowance?
How much will employees’ salaries increase?
The basic salary, i.e., ₹18,000, could increase by ₹540, and the basic pension, i.e., ₹9,000, could increase by ₹270. The final decision on this matter will be taken by the Cabinet between September and October.

How is dearness allowance determined?
A formula related to the CPI-IW is used to calculate dearness allowance. If the AICPI-IW increases, it means the dearness allowance will also increase. However, if it decreases, the dearness allowance will decrease.
How much is the AICPI-IW increasing?
According to data from the Labor Bureau’s website, it has been increasing since March.
The CPI-IW was recorded at 143 in March 2025, then 143.5 in April 2025. It then increased by 0.5 to 144 in May 2025.
What is dearness allowance?
To address rising inflation, every employee receives a dearness allowance along with their basic salary. This is revised twice a year. The amount of increase or decrease is determined based on current inflation. CPI-IW data is used to calculate this amount.
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