Diwali Bumper Incoming? DA Likely To Rise To 58%, Over 1 Crore Employees And Pensioners To Benefit | Business News

If approved, this increment will lighten the financial burden on employees and pensioners, allowing them to meet household needs more comfortably during the festive period. (News18)

The Central Government is likely to bring festive cheer to its employees and pensioners next month, with a potential 3 per cent increase in Dearness Allowance (DA) on the cards. If implemented, the current DA of 55 per cent would rise to 58 per cent, offering welcome relief to millions of employees and pensioners who eagerly await their monthly salary and pension.

This revision could make Diwali 2025 even more special, with the extra funds offering financial breathing room during the festive season.

DA Is Revised Twice A Year

The central government revises DA twice annually, once for the period January to June, and again for July to December. Earlier this year, in March 2025, the government raised DA by 2 per cent for the January-June cycle, increasing it from 53 per cent to 55 per cent.

Now, discussions are underway for a 3 per cent hike for the July-December period, which, if approved, would benefit nearly one crore employees and pensioners across the country.

What Does A 3% DA Hike Mean?

DA is directly linked to the basic salary or pension. Here’s how the increase would reflect in real terms:

If a pensioner’s basic pension is Rs 9,000, they currently receive Rs 4,950 as DA (at 55 per cent), bringing the total to Rs 13,950.

If DA rises to 58 per cent, they would receive Rs 5,220, totalling Rs 14,220, a monthly gain of Rs 270.

For an employee with a basic salary of Rs 18,000, the current DA is Rs 9,900, making the total salary Rs 27,900.

With 58 per cent DA, the amount would rise to Rs 10,440, and the total would become Rs 28,440, a monthly benefit of Rs 540.

While the increase might seem modest, during the festive season, every extra rupee counts, and it could go a long way in managing expenses or even small celebrations.

How Is DA Calculated?

The Dearness Allowance is determined using the Consumer Price Index for Industrial Workers (CPI-IW), which reflects inflation levels. As inflation rises or falls, DA is adjusted accordingly to help employees maintain their purchasing power.

Though the government has not officially confirmed the hike, based on trends in recent years, such announcements typically come after Navratri and before Diwali. Expectations are high that the increase will follow the same timeline this year.

If approved, this increment will lighten the financial burden on employees and pensioners, allowing them to meet household needs more comfortably during the festive period.