Central government employees and pensioners are expected to get a final rise in Dearness Allowance (DA) and Dearness Relief (DR) under the 7th Pay Commission before Diwali 2025. This rise will protect the July-December 2025 tenure, as the government formulate strategies to implement the 8th Pay Commission in early January 2026.
DA Hike Before Diwali 2025: Expected Timing and Quantum of the DA Hike
Media reports show that the government may publicly declare the increase in DA and DR in the mid of the October 2025, just ahead of the festive season. Whereas no official date has been confirmed yet, as per the previous data, DA hikes are declared twice a year, in the month of March and September, and functional retroactively from January and July.
For Industrial Workers (AICPI-IW), the DA scheme is created on the All-India Consumer Price Index, which measures the inflation data along with the cost of living that changes, accordingly. On the basis of a recent data released by the Labour Bureau shows a firm rise in the index, from 141.4 in June 2024 to 146.5 in July 2025, showing inflationary pressures over the year.
In view of this upsurge, experts assume the upcoming DA hike to be somewhere around 3% -4%, giving subsequent relief to government employees and pensioners.
DA Hike Before Diwali 2025: Impact on Salaries and Pension Benefits
Previously, the hike in DA was declared in March 2025, leading a increase in DA from 53% to 55%. For instance, an employee with a basic salary of Rs.18,000 saw a monthly increase of Rs.360, amounting to Rs.4,320 annually. Moreover, the expected hike before Diwali will improve the monthly earnings and pensions of millions.
DA Hike Before Diwali 2025: Shift to the 8th Pay Commission
However, this upcoming rise will be the last under the framework of 7th Pay Commission. Starting January 2026, the 8th Pay Commission will take over, projected to bring fresh salary amendments, allowance variations, and new norms reflecting the present economic scenario.
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Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
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