DA Hike : Dearness Allowance will Increase by 3% before Diwali, Employees and Pensioners will get Benefit

DA Hike : The central government is preparing to give a big gift to its employees and pensioners before Diwali. According to sources, there is a possibility of a 3% hike in Dearness Allowance (DA) for the period July–December 2025. If this proposal is implemented, the current 55% DA will increase to 58%, directly benefiting millions of employees and pensioners by boosting their income.

DA Revision Happens Twice a Year

The central government revises Dearness Allowance twice a year – January to June and July to December. In March 2025, DA for the January–June period was increased by 2%, raising it from 53% to 55%. Now, it is expected that a 3% DA hike will be announced for the July–December 2025 period, just before Diwali.

Direct Impact on Pension

DA is calculated on the basic pension.
For example, if a pensioner receives a minimum pension of ₹9,000, at the current 55% DA, they get an extra ₹4,950, making the total pension ₹13,950. Once DA is increased to 58%, the extra amount will become ₹5,220, raising the total pension to ₹14,220. This means an additional ₹270 per month benefit.

How Employees’ Salary Will Change

If an employee’s minimum basic salary is ₹18,000, then at 55% DA, they currently receive ₹9,900, making the total salary ₹27,900. With 58% DA, they will get ₹10,440, raising the total salary to ₹28,440. This means an additional ₹540 per month benefit.

How DA Is Calculated

The formula for Dearness Allowance is based on the Consumer Price Index for Industrial Workers (CPI-IW) released by the Labour Bureau.

Formula:

$(\%) = \frac{(12\text{-month average CPI-IW} – 261.42)}{261.42} \times 100$

The government decides DA rates using this calculation.

When Will the Official Announcement Come?

Although the government has not made any official announcement yet, looking at past trends, DA hikes are usually declared after Navratri and before Diwali. This year too, employees and pensioners can expect a 3% DA hike as a festive gift, which will increase their income and double the festive cheer.