Before Diwali, A Big Gift for Central Government Employees — DA Hike Announced!

Here’s some good news to brighten your Diwali season!
Just before the festival of lights, the Government of India has announced another Dearness Allowance (DA) hike for central government employees and pensioners.

This time, the increase applies to those under the 5th and 6th Pay Commissions, following last week’s DA hike for employees covered under the 7th Pay Commission. For lakhs of employees and pensioners, this festive season feels a little more special — with extra money on the way!

What Exactly Is Dearness Allowance (DA)?

Think of DA as a cushion against rising prices.
It’s a cost-of-living adjustment paid to government employees and pensioners to help them cope with inflation. Every six months — usually in January and July — the government reviews inflation trends and revises the DA rate accordingly.

So, whenever the cost of essentials goes up, DA acts like a helping hand to maintain purchasing power.

5th Pay Commission: 8% DA Increase

Let’s start with those under the 5th Pay Commission.

According to the Finance Ministry’s latest notification, DA has been increased from 466% to 474%, marking an 8% hike.

That means a noticeable boost in take-home pay and pension for those who still fall under this pay structure. The revised DA rates are effective from July 1, 2025.

Even though the 5th Pay Commission officially ended in December 2005, a small group of employees and pensioners are still drawing salaries or pensions under it — and this hike brings real relief to them during the festive season.

6th Pay Commission: 5% DA Increase

Now, let’s talk about the 6th Pay Commission.

Employees and pensioners in this category will see their DA rise from 252% to 257% — a 5% hike.

Just like the 5th Pay revision, this too takes effect from July 1, 2025. The 6th Pay Commission was in force until 2015, when the 7th Pay Commission replaced it. But many employees and pensioners are still paid according to its framework, making this update a meaningful bonus.

Recently Announced: DA Hike Under the 7th Pay Commission

Only a few days ago, the government also increased DA by 3% for employees and pensioners under the 7th Pay Commission.

This move directly benefited nearly 49.19 lakh central government employees and 68.72 lakh pensioners — that’s over 1 crore people enjoying a higher income before Diwali!

Together, the DA hikes across all three Pay Commissions show the government’s effort to help employees cope with inflation and celebrate the festive season without financial stress.

Why Does This Matter Right Now?

Inflation has been putting pressure on household budgets for months. Essentials like groceries, fuel, and medicines cost more than ever.

By increasing DA, the government is essentially saying: “We know things are expensive — here’s a little relief.”

It’s not just about money; it’s about emotional reassurance for millions of families relying on fixed incomes. For pensioners especially, every small increase makes daily life a bit easier and more comfortable.

How Often Does the Government Revise DA?

The central government reviews and revises Dearness Allowance twice a year — in January and July.

The increase is based on the All India Consumer Price Index (AICPI), which measures how much essential goods and services cost over time. If inflation goes up, DA usually goes up too.

That’s why DA hikes are often called “inflation relief” or “price rise protection.”

A Festive Boost for Every Household

For government employees, this announcement means one thing — a brighter Diwali.

That extra money in salaries and pensions will help families plan festive purchases, pay bills, or simply save for the future.

And for pensioners, especially senior citizens living on limited income, this feels like a warm gesture — one that acknowledges their years of service and current needs.

So, as diyas light up homes across India, this DA hike truly feels like the government’s Diwali gift to its employees and retirees.

Frequently Asked Questions

1. What is the effective date of the new DA hike?
The revised Dearness Allowance under the 5th and 6th Pay Commissions will take effect from July 1, 2025, as per the Finance Ministry’s notification.

2. How much DA increase was announced under the 7th Pay Commission?
The government recently increased DA by 3% for employees and pensioners under the 7th Pay Commission, benefiting over 1 crore people.

3. Why does the government revise DA twice a year?
DA is reviewed in January and July every year to help employees and pensioners adjust to rising prices due to inflation. It’s a measure of financial support against the changing cost of living.