Another gift to central employees, DA increased by 8 percent:

DA Hike: The Central Government has once again given a Diwali gift to some of its employees and pensioners by increasing the Dearness Allowance (DA). This gift is for those employees who come under the 5th and 6th Pay Commission. Revision of DA rates has been announced for such employees. It is noteworthy that last week itself, increase in DA was announced for the employees covered under the 7th Pay Commission.

How much has it increased?
According to the order of the Finance Ministry, the DA of employees getting salary under the 5th Pay Commission has been increased from 466% to 474%. In this way there has been an increase of 8 percent. This revised rate will be effective from July 1, 2025. In simple words, now these employees will get dearness allowance at the rate of 474% on their basic salary. It is noteworthy that the tenure of the 5th Pay Commission had ended in December 2005.

Then the Sixth Pay Commission was constituted for the next 10 years. Under this, DA of salaried employees has been increased from 252% to 257%. This increase will also be applicable from July 1, 2025. It is noteworthy that it was in force from January 2006 to December 2015. There are some central autonomous bodies and public sector undertakings to which the recommendations of the Seventh Pay Commission have not been implemented. Employees of these bodies still come under the pay structure of the Fifth or Sixth Pay Commission.

How much increase under the Seventh Pay Commission?
Recently, the Union Cabinet has increased DA and DR by three percent for about 49.19 lakh central employees and 68.72 lakh pensioners, which is a Diwali gift. DA and DR was currently 55 per cent of the basic pay/pension and the increase of three per cent will be effective from July 1, 2025.

The increase in DA and DR will put a total burden of Rs 10,083.96 crore on the government exchequer annually. It is noteworthy that the Central Government amends DA and DR twice a year. The previous amendment, announced in March, came into effect from January 1.