June 21, 2026 06:15 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
'Italy and I never beg': Meloni fires back at Trump over G7 photo claim | No more 'brother': Stalin's formal birthday greeting to Rahul reflects deepening rift | TMC seeks disqualification of 20 rebel MPs, Abhishek says 'membership should go' | Nara Lokesh pitches Andhra Pradesh as investment hub during Kolkata visit, sets $2.4 trillion economy goal | 'Least restrictive option': Setback for Telegram as Delhi HC backs Centre's ban ahead of NEET-UG re-test | Fortuner torched, BJP leaders burnt alive: Sand mining feud ends in triple murder in Chhattisgarh | 'If Modi is the leader and India is attacked, we'll be there': Trump's strong assurance at G7 | 'Safety of Indian seafarers of utmost importance': PM Modi's strong message to Trump at G7 | Trump says Iran deal 'not final', threatens fresh strikes if Tehran ‘doesn’t behave’ | G7 declares war on global drug cartels, unveils major anti-trafficking plan
Photo: Pixabay

Centre clears 3% DA hike for govt staff, pensioners ahead of festive season

| @indiablooms | Oct 01, 2025, at 04:40 pm

New Delhi: The government on Wednesday approved a three percent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central employees and pensioners, effective from July 1.

Union Minister Ashwini Vaishnaw called it a “gift” ahead of Dussehra and Diwali.

The decision, which was on expected lines, is the second DA revision this year.

In March, a two percent increase had raised payouts from 53 percent of basic pay to 55 percent, following a three percent hike last October.

The latest revision takes DA to 58 percent of basic pay.

DA, meant to cushion employees against inflation, is revised bi-annually based on the Consumer Price Index (CPI) for industrial workers.

For example, an employee with a basic salary of ₹60,000 will now get ₹34,800 as DA, compared to ₹33,000 after the March hike.

Future pay revisions will be steered by the Eighth Pay Commission, announced in January but still awaiting an official notification on its members and terms of reference.

Salary increments will depend on the “fitment factor” — a multiplier applied to the basic pay — which experts estimate between 1.83 and 2.86.

This could translate into a hike of roughly 13–34 percent.

Once the commission’s recommendations take effect from January 1, 2026, the DA, currently at 58 percent, is expected to be reset to zero and merged with basic pay.

Analysts note that while the effective hike may be moderated, the move will remain beneficial as pensions are also linked to basic pay and DA.

The 7th Pay Commission had earlier streamlined the system by reviewing nearly 200 allowances, scrapping 52 and merging several others to simplify the salary structure.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.