Center’s ‘Diwali gift’ to government employees: 3% pension increase, dearness allowance 58%:

Da hike: The basic salary and pension of government employees has been increased by 3%. This increase will be effective from July 1, 2025. The arrears of July, August and September will be given with salary for the month of October.

Increase in dearness allowance for government employees
The central government on Wednesday approved an increase of 3% in dearness allowance (DA) of central employees and pensioners. This decision has been taken before festivals like Dussehra and Diwali. About 48 lakh employees and 68 lakh pensioners will benefit from this increase. With this, the DA rate has increased from 55% to 58%. This increase will be effective from July 1, 2025. The arrears of July, August and September months will be given with the salary of October before Diwali.

How much is your salary?
This increase is applicable to all central employees, pensioners and family pensioners under the 7th Pay Commission. Know how much your salary will increase after 3% increment.

Employees with a minimum of Rs 18,000 will get additional Rs 540 per month. Now their total salary will be Rs 28,440

Pensioners who are getting a minimum pension of Rs 9,000 will get an additional Rs 270 every month. Now his total pension will be Rs 14,220 (58%). Together with three months (July-September) arrears, employees will get a benefit of bonus ranging from Rs 2,700 to Rs 3,600.

How are DA and TR determined?
Inflation allowance (DA) for central government employees is determined on the basis of Consumer Price Index (CPI-IW) for industrial workers. This data is published monthly by the Labor Bureau working under the Ministry of Labor. DA is calculated on the basis of this data. Often notifications are released later, but outstanding (DR) is paid.

8th Pay Commission update:
The government announced the 8th Pay Commission in January 2025. The official notification about the members of the Commission and the terms of reference (TOR) has not been issued yet. The recommendations of the Commission will be applicable from January 1, 2026. At that time, dearness allowance (currently 55%) will be reduced to zero and will be linked to the original salary.