As the festive season draws near, the government has announced a big Diwali gift for central government employees and pensioners. Dearness Allowance (DA) and Dearness Relief (DR) have been increased, bringing cheer to millions of households just in time for celebrations.
New DA Rates
At present, employees and pensioners were receiving DA/DR at 55% of their basic pay or pension. With the latest hike, this rate has now gone up by 3%, taking the overall figure to 58%. Some discussions had hinted at a possible 4% increase, but the government has finalised a 3% rise.
Effective Date and Arrears
The revision will be effective from 1 July 2025. This means employees and pensioners will not only enjoy higher monthly payouts starting now but will also receive arrears for the months of July, August, and September. The announcement, timed just before Diwali, ensures additional income for festive shopping and family expenses.
Impact on Salaries and Pensions
Here’s how the DA hike translates into extra income for different pay levels:
| Basic Pay / Pension | Old DA @ 55% | New DA @ 58% | Monthly Increase |
|---|---|---|---|
| ₹20,000 | ₹11,000 | ₹11,600 | ₹600 |
| ₹30,000 | ₹16,500 | ₹17,400 | ₹900 |
| ₹40,000 | ₹22,000 | ₹23,200 | ₹1,200 |
| ₹50,000 | ₹27,500 | ₹29,000 | ₹1,500 |
| ₹60,000 | ₹33,000 | ₹34,800 | ₹1,800 |
Bottom Line
This DA hike brings timely relief for employees and pensioners coping with rising costs. With arrears included, the festive season is set to be brighter for millions of families across the country. The increase from 55% to 58% is not just a financial adjustment but also a symbolic gift of goodwill during Diwali.