DA Hike: The central government may announce a 3%–4% hike in dearness allowance (DA) for employees and pensioners before Diwali. This will be the last hike under the 7th Pay Commission. The decision may be taken in September-October.
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DA Hike: The central government may soon announce an increase in dearness allowance (DA) to employees and pensioners before Diwali. This may be the last increase in dearness allowance under the 7th Pay Commission, as the government is planning to implement the 8th Pay Commission from January 1, 2026. This time Diwali is on October 20. In such a situation, the government can give a Diwali gift to government employees and pensioners by adding arrears with the salary of September.
According to a report by Moneycontrol, DA is likely to increase from 3% to 4%. If the government approves an increase of 3%–4%, then DA can reach 58%–59%. Currently DA is 55%. If DA increases by 3%, then the monthly income of an entry-level employee with a basic salary of ₹ 18,000 will increase by about ₹ 540. Similarly, pensioners with a basic pension of ₹9,000 will get a benefit of ₹270. However, it will completely depend on the government how much DA is increased. The cabinet can take a final decision on this in September–October.
DA is amended twice
The government revises DA twice a year. First time in January and second time in July. The new rate will be applicable from July 1. But, usually it is announced in September or October. Employees get arrears for July, August and September. Government employees will hope that the government announces DA hike in September before the festive season.
This is how dearness allowance is decided
Dearness allowance is calculated on the basis of Consumer Price Index (CPI-IW) of Industrial Workers. The Labor Bureau releases this data every month. The government decides DA under the formula of 7th Pay Commission using the average CPI-IW of the last 12 months.
How much will be the benefit?
If DA increases by 3%, the monthly income of an entry-level employee with a basic salary of ₹ 18,000 will increase by about ₹ 540. Similarly, pensioners with a basic pension of ₹ 9,000 will get a benefit of ₹ 270. However, it will completely depend on the government how much DA increases. The cabinet can take a final decision on this in September–October.
