Festive celebrations in the Modi government have already begun for Diwali 2025, as they sanctioned a 3% increase in the Dearness Allowance (DA) and Dearness Relief (DR) for point 1 central government employees and pensioners. the total of 1.2 crore persons gets the benefit, as the raise in DA and DR rate from 55% to 58% of basic pay applies across the country.
Diwali Gift for Government Staff
The hike was revealed by the Union Cabinet, led by Prime Minister Narendra Modi, on 1st October 2025 as a step taken to protect employees and retirees from inflation. The modified DA/DR will apply for salaries and pensions in October and will be based on the July 1, 2025, effective date.
Arrears to Be Paid in November
In November 2025, both employees and pensioners will receive a lump sum payment for arrears equivalent to 3 months, namely, from July, August, and September 2025. This financial support is believed to be helpful during the holiday season and will also partly pay for the increased cost of living.
DA Hike Summary Table
| Category | Previous Rate | New Rate (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., Arunachal Pradesh, Karnataka) | 55% | 58% | July 1, 2025 | November 2025 |
Final Thoughts
A 3% DA increase comes as a timely and necessary support measure for families to cope with inflation and enjoy the festive season with less financial constraint. With the 7th Pay Commission ending in December 2025, employees are eager for even wider reforms under the 8th Pay Commission. Do not forget to double-check your updated payroll slip and make sure that the arrears credited were done correctly.