With the festive season underway, over 50 lakh central government employees and 65 lakh pensioners are on edge as the Modi government is expected to announce a much-awaited Dearness Allowance (DA) and Dearness Relief (DR) hike ahead of Diwali.
According to reports, the Confederation of Central Government Employees and Workers has written to Finance Minister Nirmala Sitharaman, urging her to take an early decision on the DA/DR installment due since July 1, 2025. Traditionally, the government revises DA and DR twice a year—in January and July—and the announcement for the second hike usually arrives in late September.
How Much the Hike Could Be
At present, DA and DR stand at 55 per cent after the January 2025 hike. If the widely expected 3 per cent increase is approved, the new rate will rise to 58 per cent. Employees are also hopeful about a pre-Diwali bonus in addition to the DA revision.
Why DA Matters
DA is a crucial part of salaries and pensions, designed to offset the impact of inflation. The government calculates the hike based on the Consumer Price Index for Industrial Workers (CPI-IW), released every month by the Labour Bureau.
Potential Impact
If cleared, the hike will mean higher take-home pay for lakhs of government employees and bigger pensions for retirees—injecting festive cheer and boosting household spending during the season.
