In a celebratory moment for the government employees and pensions, the Union cabinet has sanctioned a 3% augmentation in Dearness Allowance (DA) and Dearness Relief (DR) per the 7th Pay Commission. With this increase, taking effect from 1st July 2025, the DA/DR rate is lifted up from 55% to 58%, and the payments for the salary and pension will be done in October 2025 accordingly.
Diwali Bonanza for Government Staff
The announcement has been made right at the time of Diwali, thus granting financial support and enjoyment to more than 1 crore central government employees and pensioners. The increment is determined by the Consumer Price Index for Industrial Workers (CPI-IW), which measures the inflation and living costs.
Effective Date and Arrears
The increase, although effective from July 1, 2025, will be paid in November 2025 only for the arrears of July to September. So, the employees are going to be benefitted fully from the increment along with the backdated payments.
DA Hike Summary Table
| Category | Previous Rate | New Rate (Oct 2025) | Effective From | Arrears Paid In |
|---|---|---|---|---|
| Central Govt Employees | 55% | 58% | July 1, 2025 | November 2025 |
| Pensioners (Dearness Relief) | 55% | 58% | July 1, 2025 | November 2025 |
| States Following Centre (e.g., UP, Haryana, Jharkhand) | 55% | 58% | July 1, 2025 | November 2025 |
Final Thoughts
This 3% DA hike is the last change under the 7th Pay Commission which will expire on December 31, 2025. The increase not only assists to the great extent inflation but also prepares the ground for the new 8th Pay Commission, said to be quite reformative in terms of salaries. Employees and pensioners must take a look at their updated payslips and make sure that their arrears are credited correctly next month.