3% DA Hike Cleared For Central Govt Staff, Boost Ahead Of Festive Season

Based on the latest AICPI index data, the DA for central government employees is increasing from 55% to 58%. This is the news that central government employees and pensioners look forward to every festive season.

The long-awaited Dearness Allowance (DA) hike for government employees and pensioners has been announced. Based on recent AICPI data, the DA will rise from 55% to 58%, effective July 1, 2025.

Over a crore employees and pensioners in India eagerly await news of DA hikes every festive season. The DA increase significantly impacts their daily lives, from children's education to household budgets and future planning. The confirmed 3% hike provides much-needed relief during the upcoming festive season.

According to government sources, the official announcement regarding the 3% DA hike is expected during the cabinet meeting in October. However, since the increase is effective from July 1st, employees will receive the arrears for July, August, and September (and October if the announcement is delayed) in a single payment.

How was the hike calculated? AICPI index numbers rose steadily from January to June 2025. With the June 2025 index reaching 145.0, the total DA became 58.18%. As per regulations, decimals are disregarded, setting the DA at 58%. For example, someone with a basic salary of Rs. 18,000 will receive an additional Rs. 540 per month, a yearly increase of Rs. 6,480.

Those at Level-1 with a basic salary of Rs. 56,900 will see a monthly increase of Rs. 1,707 and an annual increase of Rs. 20,484. Overall, this 3% DA hike is more than just a number; it offers financial relief to millions of families. The announcement, expected in October, will double the festive cheer amidst rising economic burdens.

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