7th Pay Commission: Centre Likely to Announce DA Hike Before Diwali, Check Expected Increase

Ahead of the festive season, the Central Government may announce a much-awaited hike in Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners. If approved, this could be the last DA hike under the 7th Pay Commission, as the government is preparing to implement the 8th Pay Commission from January 1, 2026.

When Will the DA Hike Be Announced?

The government revises DA twice every year—once in January and again in July. While the new rates come into effect from July 1, the official announcement is usually made around September or October. Employees also receive arrears for the months of July, August, and September along with their revised salary.

This year, with Diwali falling on October 20, employees and pensioners are hopeful that the government will announce the DA hike in September, ensuring arrears and higher salaries are credited before the festival.

How is DA Calculated?

The calculation of DA is based on the Consumer Price Index for Industrial Workers (CPI-IW), which is released monthly by the Labour Bureau. The government then takes the average CPI-IW for the past 12 months and applies the formula set under the 7th Pay Commission to arrive at the DA percentage.

At present, the DA rate stands at 55%. As per reports, the upcoming revision is likely to bring a 3% to 4% increase, which would raise DA to 58–59%.

How Much Benefit Will Employees Get?

If the DA is increased by 3%, employees and pensioners will see a noticeable rise in their monthly income. For example:

• An entry-level central government employee with a basic salary of ₹18,000 would receive an additional ₹540 per month.

• A pensioner with a basic pension of ₹9,000 would gain ₹270 per month.

Although these amounts may vary depending on the basic salary or pension, the hike will benefit nearly 47 lakh employees and 69 lakh pensioners across the country.

Cabinet Decision Expected in September

While the calculation has already pointed towards a 3–4% hike, the final approval lies with the Union Cabinet. The decision is expected in September or early October 2025, just in time for the festive season. If announced, the arrears from July to September will be credited along with the September salary, giving employees a financial boost ahead of Diwali shopping.

Why This Could Be the Last DA Hike Under the 7th Pay Commission

The DA revision scheduled for July 2025 is being seen as the final one under the 7th Pay Commission framework, since the government plans to implement the 8th Pay Commission from January 2026. The new commission is expected to revise salary structures, allowances, and pensions for central government employees, bringing further changes in income.

Conclusion

The upcoming DA hike will be a festive gift for government employees and pensioners, easing household budgets at a time when inflation remains a concern. While a 3–4% increase may not seem very large, the additional income combined with arrears will bring timely financial relief ahead of Diwali.

All eyes are now on the Union Cabinet’s decision in September, which will officially confirm how much extra government employees and pensioners will take home this festive season.