Govt announced DA hike of 3%, check impact

Ahead of Dussehra and Diwali celebrations in the country, the central government has announced a 3% hike in DA (dearness allowance) for around 49 lakh central government employees, and a 3% raise in DR (dearness relief) for approximately 69 lakh central government pensioners. Notably, this is the last DA/DR revision that will take place under the 7th Central Pay Commission, before the 8th Pay Commission comes into effect starting January 2026.

However, details such as committee members, ToR (terms of reference) regarding the 8th pay commission are yet to be officially notified.

DA/DRs are revised twice every year to keep salaries and pensions in line with inflation. DA hikes become effective from January 1 and July 1 of the concerned year. Hence, this 3% DA hike will be effective from July 1,i.e. employees will receive the revised, cumulative DAs for July, August, September and October now. In March this year, the government hiked the DA by 2%, from 53% to 55% of basic pay. With the present 3% hike, the DA is set to become 58% of basic pay.

ET Wealth Online takes a closer look at how much your DA will be at various pay grades, as defined under the 7th Pay Commission