DA hike news: When was Dearness Allowance and Relief announced last year?

3 min read | Updated on September 26, 2025, 06:59 IST

SUMMARY

This year, Diwali falls on October 21, 2025, and expectations were high that the Union Cabinet would announce the DA/DR hike in time, but that hasn’t happened yet.

DA/DR hike: The hike is revised twice a year, in January and July, and is usually announced a few months later. | Image: Shutterstock

It’s festival time, but no Dearness Allowance (DA) and Dearness Relief (DR) hike has been announced yet by the government for central govt employees and pensioners.

In 2023 and 2024, the government made sure to bring festive cheer by announcing DA, DR hikes just before Diwali.

Last year, in 2024, the DA/DR hike was approved on October 16, just days before the festival. In 2023, too, the announcement came before the festive season, giving a much-needed financial boost to over 1 crore employees and pensioners.

This year, Diwali falls on October 21, 2025, and expectations were high that the Union Cabinet would announce the DA/DR hike in time, but that hasn’t happened yet.

Cabinet approves bonus for railway employees, but no word on DA/DR

On Wednesday, September 24, the Union Cabinet approved a performance-linked bonus for railway employees equivalent to 78 days' wages.

However, there was no announcement on the much-awaited DA/DR hike, leaving central government employees and pensioners disappointed.

Typically, the DA/DR revision for July is announced in the last week of September, with arrears for July to September paid in early October.

This year’s delay has caused anxiety among employees and pensioners. On September 23, SB Yadav, Secretary General of the Confederation of Central Government Employees and Workers (CCGEW), wrote to the Finance Minister:

“Normally, DA/DR used to be declared in the last week of September, and three months’ arrears paid in the first week of October. There is severe discontent over the delay.”

If the government clears a 3% hike, the DA/DR rate will increase from 55% to 58% of the basic salary or pension.

Why the DA/DR hike is important

Dearness Allowance is a crucial part of a government employee’s salary. It helps offset inflation and is calculated based on the All India Consumer Price Index (AICPI).

The hike is revised twice a year, in January and July, and is usually announced a few months later.

This upcoming DA revision will likely be the final one under the 7th Pay Commission. The 8th Pay Commission is expected to come into effect from January 2026.

Timeline for DA implementation:

⦁ July 1, 2025: DA hike comes into effect

⦁ September 2025: Cabinet approval and official notification expected

⦁ October 2025: First salary with new DA credited

⦁ October 2025: Lump sum arrears for July, August, and September paid

Employees and pensioners now wait to see if the Centre will stick to tradition and announce the DA/DR hike before Diwali or whether the festive cheer will be delayed this year.