Dearness allowance: Before Diwali this year, a big good news is going to come for the central employees and pensioners across the country. The central government is going to announce a 3 percent increase in Dearness Allowance (DA) and Dearness Relief (DR). According to the information, this increase will be considered effective from July 2025, and its benefit will be given with the salary of October. More than 1.2 crore central employees and pensioners will be directly benefited by this decision. The aim of the government is to provide them with financial support during the festive season so that they can feel some relief from the blow of inflation.
How much is being received now, and how much will it increase
At present, employees are getting dearness allowance at the rate of 55%. After the increase, it will reach 58%. That is, employees whose basic salary is ₹ 50,000, earlier used to get ₹ 27,500, which will now increase to ₹ 29,000. On the other hand, if we talk about pensioners, if someone’s basic pension is ₹ 30,000, then earlier he used to get ₹ 16,500, which will now increase to ₹ 17,400. An additional amount of ₹ 1,500 and ₹ 900 every month will help with their household expenses. Experts say that even though this is a short-term relief, it will play an important role in the festive season.
Right timing of announcement and connection with festivals
This time, the government has chosen the time of announcement, especially keeping in mind Diwali. Last year, in October 2024, it was announced to increase DA about two weeks before Diwali. This time, Diwali will be celebrated on 20-21 October 202,5, and before that, the government can make a formal announcement in the first week of October. This will not only provide relief to the employees and pensioners but will also have a positive effect on the market.
How is DA calculated?
Dearness Allowance is determined under the 7th Pay Commission. In this, the Industrial Workers Consumer Price Index (CPI-IW) is made the basis. The average of CPI-IW for the last one year, i.e., from July 2024 to June 2025, was 143.6, on the basis of which the rate of DA has been fixed at 58%. This calculation is done twice a year, every time. The first revision is done before Holi (January to June) and the second before Diwali (July to December).
Benefit of arrears and future expectations
The employees and pensioners who will get the arrears from July to September can be included in the salary of October. This will provide additional money to spend in festivals. Economists believe that this increase is a necessary relief for the families struggling with inflation, although the real change will come when the recommendations of the 8th Pay Commission are implemented. At present, this step is a timely decision to increase consumption in the market and bring some strength to the economic condition of the common citizens.
Rising expectations in the festive season
Expenses increase during the festive season. In such a situation, increasing DA will not only bring happiness to the homes of the employees, but will also increase shopping in the market. This step of the government will directly give impetus to the economy. At the same time, it will also prove to be a big support for the pensioner class, which is dependent on permanent income.
In this way, this increase before Diwali will come as a relief gift for lakhs of families and will provide some support to the class struggling with financial pressure.