DA Hike: The central government may announce a 3%-4% hike in dearness allowance (DA) of employees and pensioners before Diwali. This will be the last hike under the 7th Pay Commission. The decision may be taken in September-October.
The central government may soon announce a hike in dearness allowance (DA) to employees and pensioners before Diwali. This could be the last hike in DA 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 may give a Diwali gift to government employees and pensioners by adding the arrears with the September salary.
According to a report by Moneycontrol, DA is likely to increase by 3% to 4%. If the government approves a hike of 3%–4%, DA could reach 58%–59%. Currently DA is 55%. 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 entirely depend on the government how much DA increases. The cabinet is likely to take a final decision on this in September-October.
DA is revised twice.
The government revises DA twice a year. The first time in January and the second time in July. The new rate will be effective from July 1. However, it is usually announced in September or October. Employees get their dues for July, August and September. Government employees will hope that the government will announce the DA hike in September before the festive season.
This is how dearness allowance is determined.
Dearness Allowance is calculated on the basis of Consumer Price Index of Industrial Workers (CPI-IW). The Labour Bureau releases this figure every month. The government decides DA under the 7th Pay Commission formula 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 entirely depend on the government how much DA increases. The cabinet may take a final decision on this in September-October.
