New Delhi, October 1: The Union Cabinet is expected to approve a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for Central government employees and pensioners at its meeting today. This move will raise the DA and DR rates from 55% to 58% of basic pay and pension. According to reports, the increase will take retrospective effect from July 1, 2025, with arrears for July, August, and September likely to be released alongside the October salary—timed perfectly ahead of Diwali.

The revision applies to all employees and pensioners covered under the 7th Pay Commission, including family pensioners. For example, a government employee drawing a basic salary of INR 30,000 will gain an extra INR 900 per month, while those earning INR 40,000 basic pay will see an additional INR 1,200 monthly. Over three months, the arrears will add up to INR 2,700–3,600, providing welcome festive relief. 7th Pay Commission: Central Government Employees Likely to Get 3% DA Hike Before Diwali, Check Details.

DA and DR are reviewed twice annually, in January and July, based on inflation data from the All India Consumer Price Index for Industrial Workers (CPI-IW). Though announcements are often delayed, arrears bridge the gap and ensure employees and pensioners are compensated for the lag. 7th Pay Commission Update: Govt Likely to Announce 3% Dearness Allowance Hike for Central Employees and Pensioners in October, DA to Touch 58% in What Could Be the Last Hike Before 8th Pay Commission.

Today’s likely approval will mark the final DA-DR revision under the 7th Pay Commission. From January 2026, the 8th Pay Commission is expected to be implemented, offering a broader restructuring of salaries and pensions for Central government employees.

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