In the festive season, the central government is preparing to give great relief to its employees and pensioners. It is reported that dearness allowance (DA) and inflation relief (DR) can be increased by 3%. This decision will directly benefit more than 1.2 crore central employees and pensioners.
How much will dearness allowance be increased?
The government can formalize this announcement in the first week of October. After this, the DA of employees will increase from 55% to 58%, which will be effective from July 2025. Also, employees and pensioners will also get a three -month arrear, which is likely to be paid with the salary of October.
How much will be the benefit?
If the basic salary of an employee is ₹ 50,000, then he was getting ₹ 27,500 at 55% DA. Now it will increase to ₹ 29,000 at 58% DA. That is, additional income of ₹ 1,500 every month. At the same time, pensioners with ₹ 30,000 pension used to get ₹ 16,500 at 55% DR, which will now be ₹ 17,400 if 58%. That is, they will get ₹ 900 extra.
Why is it increasing?
Under the Seventh Pay Commission, dearness allowance is fixed on the basis of Consumer Price Index (CPI-IW). From July 2024 to June 2025 the average CPI-IW was 143.6, which is equal to 58% DA. For this reason, DA-DR is believed to increase 3% during the July-December 2025 period.
Final increase under 7th Pay Commission
This amendment is special because it will increase the final DA-DR under the 7th Pay Commission. Its duration will end on 31 December 2025. The Central Government has already announced the 8th Pay Commission in January 2025, although its conditions and members are yet to be selected.
