Just before the beginning of the festive season, the central government has given good news to crores of central employees and pensioners of the country. To provide relief from rising inflation, the government has given the green signal to a historic increase of 11% in Dearness Allowance (DA). Hearing this news, the faces of lakhs of government employees and pensioners lit up.

How much is DA now?

The DA rate in July 2025 was 55%, but after this spectacular increase of 11%, it has now become 66%. This is one of the largest increases ever. This decision will directly benefit about 48 lakh central employees and 68 lakh pensioners. This increase promises to bring a little more relief to their lives.

When will you get the increased money?

These new DA rates will be applicable from July 2025. That means, in the October salary, employees will also get the arrears of July, August and September. This month, huge amount of money is going to be deposited in the bank accounts of the employees, which will make the festive season more colourful.

How much will it affect your salary?

The impact of this increase in DA will vary depending on the basic salary and grade pay of the employees. Let us understand this with simple examples:

• If the basic salary of an employee is ₹ 18,000, then at the rate of 66% DA, he will now get ₹ 11,880 DA.


• If someone’s basic salary is ₹ 35,000, then earlier he used to get ₹ 19,250 DA at the rate of 55%. Now at the rate of 66% he will get ₹ 23,100 DA. That means an additional benefit of ₹ 3,850 every month.

It is estimated that the salary of most employees will increase by ₹ 8,000 to ₹ 15,000. At the same time, the monthly income of pensioners will also increase by ₹ 1,000 to ₹ 2,500. This increase is no less than a festive bonus for employees and pensioners.

Why did the government take this decision?

This big decision has been taken keeping in mind the Consumer Price Index (CPI) and rising inflation in the country. The objective of the government is to maintain the purchasing power of employees and pensioners, so that they can easily meet their needs even in this period of inflation.

This decision will put an annual burden of ₹16,000 crore on the government exchequer. But the government believes that this will increase purchasing in the market, which will give new impetus to the economy. In the cabinet meeting chaired by Prime Minister Narendra Modi, this step has been described as ‘development oriented’. This decision is not only a relief for the employees, but is also a positive step for the country’s economy.