The Union Cabinet has given a green signal for the enhancement of 3% in the Dearness Allowance (DA) and Dearness Relief (DR) in a festive mood for the employees and pensioners of the central government. The total DA/DR now stands at 58% of the basic salary or pension following the rise from 55% to 58% that this addition, July 1, 2025 will be the starting date for the new rates. The declaration took place on October 1, 2025, and the indicated amount will be included in the October pay, crediting will happen in November 2025.
Who Are The Beneficiaries of the Hike?
About 49.19 lakhs of central government employees and 68.72 lakhs of pensioners will be the ones to enjoy the benefits of the 3% hike. This group consists of:
- Employees of the central government receiving salary according to the 7th Pay Commission
- Pensioners and their families
- Workers in government-associated companies and organizations
The increase is meant to neutralize the living costs and the rise in prices that has been established using the latest Consumer Price Index (CPI) data.
Diwali Treat for the Qualified Employees
In addition to the DA hike, the government revealed a Diwali bonus for qualifying employees. A non-productivity linked bonus will be given to people with a grade pay of up to ₹4,800, with the highest bonus being ₹7,000. The payment of this bonus will be before the festival of lights, giving not only the lower-income employees monetary comfort but also the joy of the festival.
DA/DR Hike Summary Table
| Category | Previous Rate | New Rate (July 2025) | Effective From | Bonus Eligibility |
|---|---|---|---|---|
| Central Govt Employees | 55% | 58% | July 1, 2025 | Grade Pay ≤ ₹4,800 |
| Pensioners | 55% | 58% | July 1, 2025 | Yes (as per eligibility) |
| Bonus Amount | — | Up to ₹7,000 | Before Diwali 2025 | Non-PLB category employees |
Final Thoughts
The DA and DR increases of 3%, along with the festival bonus, demonstrate the government’s intention to be by its workforce side during inflation. Employees and pensioners are prompted to look at their updated salary slips and pension statements in November. This is a timely announcement that brings financial relief and at the same time enhances the festive mood of Diwali 2025.
