The central government is set to bring good news for over 1 crore employees and pensioners ahead of Diwali: a possible Dearness Allowance (DA) hike. Here’s what you need to know.
1. Proposed 3% DA Hike
- Current DA: 55%
- Expected DA: 58% (for July–December 2025)
- Retroactive increase, directly boosting salaries and pensions
2. How Employees Benefit
- Example: Basic salary Rs 18,000 → current DA Rs 9,900 → total Rs 27,900
- With 3% hike: DA rises to Rs 10,440 → total salary Rs 28,440
- Net increase: Rs 540 per month
3. Pensioners Also See Gains
- Example: Minimum pension Rs 9,000 → current DA Rs 4,950 → total Rs 13,950
- After hike: DA rises to Rs 5,220 → total pension Rs 14,220
- Net increase: Rs 270 per month
4. DA Calculation Formula
- DA linked to Consumer Price Index for Industrial workers (CPI-IW)
- Formula:
DA(%)=12-month average of CPI-IW−261.42261.42×100DA (\%) = \frac{12\text{-month average of CPI-IW} - 261.42}{261.42} \times 100DA(%)=261.4212-month average of CPI-IW−261.42×100
- Ensures employees and pensioners are compensated for inflation
5. When Will the Hike Be Announced?
- Official notification likely after Navratri, just before Diwali
- Retroactive effect applies to July–December 2025
6. Why This Matters
- Increases disposable income ahead of the festive season
- Provides relief alongside ongoing discussions on the 8th Pay Commission
- Strengthens financial stability for millions of central government employees and pensioners
✅ Bottom Line: The proposed 3% DA hike will raise the allowance from 55% to 58%, giving over one crore employees and pensioners a higher take-home pay and enhanced pension just in time for Diwali.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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