As the festive season of Dussehra and Diwali approaches, the Modi government has announced a big relief for central government employees. The Union Cabinet has approved a 3% hike in Dearness Allowance (DA), which will now take effect from 1st July 2025.
Arrears to be Paid in October Salary
This decision means that employees will receive the revised DA for the months of July, August, and September as arrears in their October salary. Dearness Allowance (DA) and Dearness Relief (DR) are crucial components of salaries and pensions, reviewed twice every year – in January and July. Employees had been eagerly awaiting this revision, and the announcement just before Diwali has come as a timely gift.
Cabinet Approval Under PM Modi’s Leadership
The Cabinet meeting, chaired by Prime Minister Narendra Modi, gave the green signal for the 3% DA hike. With this revision, DA has gone up from 55% to 58%, directly benefiting lakhs of employees and pensioners across the country.
1.15 Crore Beneficiaries to Gain
Nearly 50 lakh central government employees and about 65 lakh pensioners will gain from this hike. Both groups had been pressing for this revision, and the approval has brought a sense of relief and celebration ahead of the festivals.
Impact of DA Hike on Employees and Pensioners
| Category | Beneficiaries | DA Rate Before | DA Rate After | Effective From | Arrears Payable |
|---|---|---|---|---|---|
| Central Govt Employees | Around 50 Lakh | 55% | 58% | 1st July 2025 | Oct 2025 Salary |
| Pensioners | Around 65 Lakh | 55% | 58% | 1st July 2025 | Oct 2025 Pension |
What About the 8th Pay Commission?
Alongside the DA hike, central employees are also eagerly waiting for the implementation of the 8th Pay Commission. Reports suggest that recommendations of the 8th Pay Commission may come into effect from January 2026. Many employee unions have already met Finance Minister Nirmala Sitharaman to push for an early decision. Employees believe that the new pay structure will significantly improve their financial position in the coming years.
Final Verdict
The 3% hike in DA before Diwali has brought festive cheer to millions of central government employees and pensioners. While this announcement fulfils a long-standing demand, employees now look forward to the 8th Pay Commission for further salary and pension revisions.
Disclaimer
This article is for informational purposes only. Readers are advised to check official government notifications for exact details and eligibility.
