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After the GST rate reform, now central government employees are expected to get ‘good news’ before the festive season. It is being told that the dearness allowance (DA) of central government employees is going to increase soon.
For employees and pensioners who have been waiting for a long time for the formation of the 8th Pay Commission, the government may announce the DA increase before Diwali. This move will provide a big relief to more than 1.2 crore central government employees and pensioners. It is estimated that the employees will get the benefit of increased earnings before Dussehra and Diwali.
Three months’ arrears will also be given
The DA of central government employees is likely to increase by 3 percent from 55 percent to 58 percent. Since this increase will be considered effective from July 2025, central government employees and pensioners will also get three months’ arrears of July, August and September by adding them to the salary and pension of October. According to the information received, the 3 percent DA increase can be formally announced in the first week of October. The government will announce it at such a time that the employees and pensioners can get some relief during the festive season.
To provide relief to its employees from rising inflation, the government revises the Dearness Allowance (DA) twice a year, which comes into effect from January 1 and July 1. While its hike is announced twice a year – in February-March and September-October. Considering inflation this year, there is a possibility of a 3-4 percent hike in DA for central government employees in July 2025. This is expected to provide relief to the employees from the impact of inflation.
How is it calculated?
The DA increase for industrial workers is calculated on the basis of the Consumer Price Index – CPI-IW, which is released every month by the Labour Bureau. The government calculates the increase in dearness allowance by taking the average of the CPI-IW data of the last 12 months and using a special formula under the Seventh Pay Commission.
Think of it this way.
The CPI-IW average from July 2024 to July 2025 was 146.3. On this basis, the current DA will increase by 3 percent from 55 percent to 58 percent.
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