Dearness allowance hike delay: No DA/DR announcement in Cabinet meet, wait gets longer

It seems the central government employees and pensioners will have to wait a little longer for the dearness allowance (DA)/dearness relief (DR) hike effective from July 1, 2025.

Central Government employees and pensioners have been eagerly awaiting a hike in dearness allowance (DA) and dearness relief (DR) with effect from July 1, 2025.

However, the DA/DR hike announcement has been delayed till now, resulting in growing "discontent" among employees and pensioners, according to a letter recently sent to Finance Minister Nirmala Sitharaman by the Confederation of Central Govt Employees & Workers (CCGEW).

In the letter dated September 23, 2025, CCGEW Secretary General, SB Yadav, said the DA hike is usually declared in the last week of September while the arrears of three months are paid in the first week of October. The delay in the announcement this year has, however, led to severe discontent among employees.

"I would like to draw your kind attention towards non-declaration of the due installment of DA/ DR w.e.f. from 01-07-2025, normally it used to be declared in the last week of September and three months arrears paid in first week of October. Severe discontent is there amongst employees and pensioners, over the delay in announcement of the same," Yadav said in his letter to the Finance Minister.

He also pointed out that the Performance-Linked Bonus (PLB) and Adhoc Bonus are also to be declared while the Durga Puja is approaching.

"The Confederation seeks your immediate intervention in the above matter and request you to kindly cause the Declaration/Issuance of DA/ DR order’s and the Bonus order’s, timely," he said.

What is the expected DA/DR hike?

As per the AICPI-IW data till June 2025, employees and pensioners may expect a 3% hike in DA/DR effective from July 1, 2025.

After declining in the first two months of 2025, the AICPI-IW increased from 143 in March to 143.5 in April to 144 in May 2025 and to 145 in June.

However, the final decision on the DA/DR hike is in the hands of the Government.

If a 3% hike is approved, then the DA/DR rate of Central Government employees and pensioners will rise to 58% of their basic salary and pension, respectively. This may also be the last increase in DA/DR before the official notification of the 8th Pay Commission.