In a festive boost for government employees, the central government has approved a 3% hike in Dearness Allowance (DA) ahead of Dussehra, announced by Union Minister Ashwini Vaishnaw on Wednesday. This hike will be effective from July 1. This decision, aimed at offsetting inflation, will increase the DA from its current rate to a higher slab, benefiting employees across various pay scales.
For an employee earning a basic salary of Rs 60,000, the revised DA will translate to an additional Rs 34,800 annually, up from the earlier Rs 33,000. “This increment is expected to enhance the purchasing power of government workers”, said Vaishnaw.
This follows a 2% increase announced in March 2025, which raised the DA from 53% to 55% of basic pay, after a 3% hike in October 2024. The latest adjustment, effective immediately, will further boost the DA to 58%, providing significant financial relief to millions of government workers
The DA hike, a periodic adjustment to counter rising living costs. The move is likely to bring cheer to employees and their families as they prepare for Dussehra celebrations and Diwali later this October. DA is periodically revised based on the Consumer Price Index (CPI) for industrial workers.
Further revisions to salaries and allowances are anticipated with the establishment of the Eighth Pay Commission, announced in January 2025. While the commission’s members and Terms of Reference (ToR) are yet to be officially notified, its recommendations are expected to take effect from January 1, 2026.
