• Source:JND
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7th Pay Commission DA Hike: The Central Government on Wednesday approved a 3 per cent hike in dearness allowance (DA) for all government employees and pensioners, raising the DA rate to 58 per cent. This revision comes ahead of the Dussehra and Diwali festivals, offering much-needed financial support to the central government staff and pensioners.

This marks the second DA increase in 2025, following a 2 per cent increase in March this year. The change will be effective from July 1, 2025, benefitting approximately 49.2 lakh employees and 68.7 lakh pensioners of the central government. The state governments are expected to implement a similar hike. The hike is expected to have a financial impact of Rs 10,084 crore annually.

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What Does A 3% DA Hike Mean?

The dearness allowance (DA) for central government employees is calculated based on the latest Consumer Price Index for Industrial Workers (CPI-IW), Hindustan Times reported.

- A 3 per cent increase in DA does not add much to the monthly salary for those with low basic pay because it is a percentage of that salary. But it helps to keep their pay in line with the rising prices of everyday goods.

- For example, an employee with a minimum basic salary of Rs 18,000 will get about Rs 540 more each month. This raises their total salary to Rs 28,440.

- Similarly, an employee with a basic salary of Rs 60,000 will now get Rs 34,800 as DA, up from Rs 33,000 after the March hike. While the increase is not very significant, it's a welcome boost before Diwali.

- Pensioners who fall under the minimum pension category of Rs 9,000 will get an extra Rs 27, raising their total pension to Rs 14,220 at the revised 58 per cent DA rate.

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The Eighth Pay Commission, announced in January this year, will decide on future salary and allowance changes. An official notification about its members and terms is still awaited.