DA Hike: Big gift to central employees, dearness allowance increased by 8 percent
DA Hike: Great news for central government employees. The central government has increased the dearness allowance (DA) for its employees and pensioners. This increase will benefit employees whose salaries are determined according to these old pay commissions. This revised rate will be effective from July 1, 2025.
News, Digital Desk- ( DA Hike) The central government has increased the dearness allowance (DA) for its employees and pensioners covered under the 5th and 6th Pay Commissions.
This increase will benefit employees whose salaries are determined according to these older pay commissions. It is worth noting that just last week the government announced a DA increase for employees covered under the 7th Pay Commission, and now this latest announcement has brought relief to employees in other categories as well.
How much has the increase been?
According to an order from the Finance Ministry, the DA for employees receiving salaries under the 5th Pay Commission has been increased from 466% to 474%, representing an 8% increase.
This revised rate will be effective from July 1, 2025. Simply put, these employees will now receive a dearness allowance of 474% on their basic salary. The 5th Pay Commission's tenure ended in December 2005.
Following this, the 6th Pay Commission (6th Pay Commission news) was formed for the next 10 years. Under this, the DA of salaried employees has been increased from 252% to 257%.
This increase will also be effective from July 1, 2025. It should be noted that it was in effect from January 2006 to December 2015. There are some central autonomous institutions and public sector undertakings on which the recommendations of the 7th Pay Commission (7th Pay Commission news) were not implemented. The employees of these institutions still fall under the salary structure of the 5th or 6th Pay Commission.
How much increase under the 7th Pay Commission-
Recently, the Union Cabinet has given a Diwali gift to the central government employees and pensioners. The Dearness Allowance and Dearness Relief (DR) of about 49.19 lakh employees and 68.72 lakh pensioners have been increased by three percent.
This increase is effective from July 1, 2025. With this, DA and DR have now become 58 percent of the basic pay/pension. This increase will put an annual burden of ₹10,083.96 crore on the government treasury. The central government revises DA and DR twice a year.