DA Hike Before Diwali 2025 is the most expected central government’s gift to its employees and pensioners in India. As the festive season approaches, they are assured to receive an increase in their final Dearness Allowance (DA) and Dearness Relief (DR) under the Pay Commission.
This expected review, probably to be announced by the mid of October 2025, will cover the timeline between July to December 2025 and spot the end of an era before the rollout of the 8th Pay Commission in January 2026.
DA Hike Before Diwali 2025: How 2025 DA Increase Compares to 2024
The Dearness Allowance (DA) was hiked in March from 53% to 55%, providing an increase in 2% point in 2024.
For instance, a central government employee having a basic salary of Rs.18,000 saw a monthly increase in DA of Rs.360, rendering to an extra Rs.4,320 annually. The DA hike aids to balance inflation and the increase in cost of living, calculated on the basis of All-India Consumer Price Index for Industrial Workers (AICPI-IW).
Current data from the Labour Bureau shows that the AICPI-IW rose from 141.4 in June 2024 to 146.5 by July 2025. This growing trend suggests that the upcoming increase in DA may fall between 3-4%, possibly doubling the previous year’s increase and offering more financial relief to both employees and pensioners.
Significance of the Final DA Hike Under 7th Pay Commission
This modification in DA is likely to be the last under the structural framework of 7th Pay Commission. Further, the government is planning for a transition to the 8th Pay Commission starting January 2026, which will announce revised salary structures, change in allowances, and updated norms to replicate the current economic landscape.
The timing of this increase in DA before Diwali line up with the tradition of declaring pay revisions ahead of key festivals, giving timely financial backing to millions.
DA Hike Before Diwali 2025: Impact on Government Employees and Pensioners
The expected DA hike will directly improve the net salaries and pensions of both central government employees and retirees. With inflation affecting day-to-day costs, this alteration plays a significant role in upholding the purchasing power of the personnel.
The changeover to the 8th Pay Commission will carry further changes, but this interim surge remains crucial for financial stability in the coming months.
DA Hike Before Diwali 2025: 7 Pay Commissions from 1947
Prime Minister @narendramodi approves setup of the 8th Central Pay Commission for all employees of the Central Government.
Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016. As the 7th Pay Commission’s term concludes in 2026,… pic.twitter.com/t5ghZ7kkwU
— PIB India (@PIB_India) January 16, 2025
Prime Minister Narendra Modi has approved the 8th Central Pay Commission for all employees of the Central Government.
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Ever since 1947, there are seven Pay Commissions that have been revised, restructured, and constituted within the system, along with the last one which was implemented in 2016. As the 7th Pay Commission’s term completes in 2026, introducing the process in 2025 confirms sufficient time to accept and evaluation recommendations before its final stage of completion.
The 8th Pay Commission is expected to address inflation, rising cost of living, and demands for better allowances, ensuring that government employees and pensioners receive a just and timely revision in their salaries. This move is also seen as a strategic step ahead of the upcoming general elections.
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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.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
