After approval of 3% Dearness Allowance, Centre’s new Diwali bonanza, likely to pay arrears in…
Dear allowance (for employees) and love relief (for retirees) are revised twice a year, in January and July to compensate for inflation.
The Union Cabinet approved a 3% increase in the value allowance (DA) for central government employees and retirees. The decision comes just before Dussehra and Diwali and gave millions of families extra money to spend in the festival season.
It rises from 55% to 58%
With this revision, DR increased from 55% to 58% of the basic wage or pension. The change is valid as of July 1, 2025.
Debts to be paid ..
Employees and retirees will borrow in July, August and September with October salaries or retirement salaries. For many, this will feel like a festive bonus just before Diwali exchange.
How much extra money?
- A government employee with a basic salary of 30,000 RS will receive an extra 900 RS per month.
- A basic paid employee of 40.000 RS will increase an increase of 1,200 RS per month.
- Three -month debts will vary between 2,700 RS and 3,600 RS.
Who will benefit?
The march is expected to benefit a total of 1,16 crore people, including 48 Lakh central government employees and 68 Lakh Pension.
Why is it revised?
And DR is reviewed twice a year in January and July to balance the effect of inflation. The revision is based on all India Consumer Price Index (CPI-IW) for industrial workers reflecting changes in the cost of life.
7. Final hike under the fee commission
This 3% march is expected to be the last revision within the scope of the 7th wage commission. The 8th Wage Commission shall enter into force as of January 2026 to pave the way for a wider examination of wage and pension rules.
