DA Hike: Government employees will receive double the good news this Diwali! This will increase their dearness allowance
DA Hike: This Diwali 2025 will be very important for central governmentｧemployees andｧpensioners. They will be very pleased to hear that the government is probably going to offer them two pieces of good news. First, the government has plans to increase DA by three percent. Second, there might be updates regarding the steps that are being taken towards the 8th Pay Commission. The increment of 3 percent DA is most probably going to be announced in October 2025. At the moment, the employees and pensioners are on 55 percent DA. The government’s increment will put them on 58 percent.
Benefit to 1.2 Crore people
Globally, this will impact positively 12 million employees and pensioners. The increase in salary will greatly increase their disposable income which will be useful to them, especially during the festive season. This is the reason why there is a high increase in salary during Dussehra and Diwali.
DA is revised every 6 months.
January to June
July to December
In March 2025, there was an increase of 2 percent that was made to the DA for the period of Januar to June. The DA therefore increased from 53 percent to 55 percent. At this moment, there is a consideration for a 3 percent increase. This will be for the July-December period.
What is the effect on pension?
DA has an effect on the salary and pension benefits of a retiree as it is a function of the basic salary or basic pension. For instance, consider a retiree whose basic pension is ₹9000. Currently, he gets ₹4950 at 55% of the DA, therefore his total pension amounts to ₹13950. If DA is revised upwards to 58%, then DA will amount to ₹5220 and the total pension will be ₹14220. This translates to an additional benefit of approximately ₹270.
What is the significance of this increase?
The festive bonus has been recently advanced to employees and pensioners of the organization which adds salary and DA to their benefit. With the DA, salary, and pension increase, the employees and pensioners will be better able to cope with the rising inflation. This increase will not only ease their financial burden but increase their purchasing power as well. This decision of the government may be an indicator of the coming festive season for employees, and pensioners, and a sign of good things soon to come.
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