The central government may soon give good news to its employees and pensioners before Diwali. A 3% hike in Dearness Allowance (DA) is expected. This will raise DA from 55% to 58% of basic pay or pension.
Nearly 1 crore central employees and pensioners will benefit from this decision. This increase will bring some extra money during the festive season.
When Will The New DA Apply And Arrears Be Paid
The hike is likely to apply from July 2025. The official notification may be issued in early October, just before Diwali.
Arrears for July, August, and September 2025 will be paid together. They will be added to the October salary or pension.
Present DA Cycle And Frequency Of Hikes
The government revises DA twice a year. One revision is for January to June and the other for July to December.
In March 2025, DA was raised by 2%, moving from 53% to 55%. The new 3% hike will apply to the July–December period.
Impact On Salary And Pension
The increase in DA will add some extra amount to monthly income. For example:
| Basic Pay / Pension | DA at 55% | DA at 58% | Extra Gain |
| ₹18,000 (Basic Pay) | ₹9,900 | ₹10,440 | ₹540 |
| ₹20,000 (Pension) | ₹11,000 | ₹11,600 | ₹600 |
This shows that both employees and pensioners will get extra financial support every month.
Last Hike Under 7th Pay Commission
This DA hike will be the last one under the 7th Pay Commission. Its validity ends on 31 December 2025.
The 8th Pay Commission process has already started but new salary rules are not yet in force. Employees and pensioners are waiting for more updates.
What Employees Should Do
Employees and pensioners should follow official announcements from the Finance Ministry or Department of Expenditure.
Check salary slips and pension slips after the hike is announced. Ensure the new 58% DA and arrears are included.
Make sure personal details like basic pay and pension records are updated. This helps avoid payment delays.
Conclusion
The 3% hike in DA is a welcome step for government employees and pensioners. It will bring financial relief before the festival season. With arrears also being paid, this increase will provide extra income at the right time.
Disclaimer
This article is for general information only. It is based on media updates and official patterns of DA hikes. Readers should confirm details through official government notifications. The writer is not responsible for any error, delay, or difference in actual announcements.
FAQs
What is the new DA percentage?
58%
From when will the hike apply?
July 2025
When will arrears be paid?
With October 2025 salary/pension
When will arrears be paid?
With October 2025 salary/pension
Is this the last hike under 7th Pay Commission?
Yes