Govt likely to approve 3% DA hike today for 116 lakh employees, pensioners
The hike applies to all Central government employees governed by the 7th Pay Commission, as well as retired pensioners and family pensioners.
- Oct 1, 2025,
- Updated Oct 1, 2025 1:04 PM IST
The Union Cabinet is set to greenlight a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for Central government employees and pensioners, raising the rate from 55% to 58% of basic pay and pension. The increase, India Today said citing sources, will be implemented with retrospective effect from July 1, 2025, and arrears for July, August, and September are expected to be disbursed with the October salary—just ahead of Diwali. The hike applies to all Central government employees governed by the 7th Pay Commission, as well as retired pensioners and family pensioners. In terms of impact, this means a person earning a basic salary of ₹30,000 will get an additional ₹900 per month, while someone with ₹40,000 basic pay will see ₹1,200 more each month. Over three months, that’s ₹2,700 to ₹3,600 in arrears—timely relief during the festive season.
DA and DR are reviewed twice a year—January and July—and are based on inflation trends reflected in the All India Consumer Price Index for Industrial Workers (CPI-IW). Although revisions are announced months later, the arrears make up for the lag. This round of revision is likely to be the final one under the 7th Pay Commission, as the 8th Pay Commission is expected to begin in January 2026.
In total, around 48 lakh employees and 68 lakh pensioners will benefit from the increase. Though seemingly modest at 3%, the festive timing, coupled with arrears, means an extra cushion in households ahead of the year-end expenses.
The Union Cabinet is set to greenlight a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for Central government employees and pensioners, raising the rate from 55% to 58% of basic pay and pension. The increase, India Today said citing sources, will be implemented with retrospective effect from July 1, 2025, and arrears for July, August, and September are expected to be disbursed with the October salary—just ahead of Diwali. The hike applies to all Central government employees governed by the 7th Pay Commission, as well as retired pensioners and family pensioners. In terms of impact, this means a person earning a basic salary of ₹30,000 will get an additional ₹900 per month, while someone with ₹40,000 basic pay will see ₹1,200 more each month. Over three months, that’s ₹2,700 to ₹3,600 in arrears—timely relief during the festive season.
DA and DR are reviewed twice a year—January and July—and are based on inflation trends reflected in the All India Consumer Price Index for Industrial Workers (CPI-IW). Although revisions are announced months later, the arrears make up for the lag. This round of revision is likely to be the final one under the 7th Pay Commission, as the 8th Pay Commission is expected to begin in January 2026.
In total, around 48 lakh employees and 68 lakh pensioners will benefit from the increase. Though seemingly modest at 3%, the festive timing, coupled with arrears, means an extra cushion in households ahead of the year-end expenses.