Diwali Gift: Modi Government Announces 3% DA Hike for these Employees

In anticipation of Dussehra on Thursday and Diwali later this month, the government has authorized a three percent rise in Dearness Allowance and Dearness Relief. This hike will take effect on July 1st, Union Minister Ashwini Vaishnaw announced Wednesday afternoon.

DA Hike for Diwali

As the holiday season begins this month, sources have already informed the media houses that a raise is anticipated for government workers and pensioners.

This is the second rise this year; the first was announced in March, when DA payouts increased from 53% of basic salary to 55%. That followed a 3% increase in October.

Employees of the government receive DA to make up for inflation.

How much will the DA Increase?

This month's increase is anticipated to correspond with changes in industrial workers' CPI (Consumer Price Index) statistics, which serve as the foundation for the Dearness Allowance's biannual modifications.

After the March rise, an employee with a base pay of Rs 60,000 will now receive an additional Rs 34,800 in DA, up from Rs 33,000 previously.

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Eighth Pay Commission 

The Eighth Pay Commission, which was announced in January, will make decisions regarding further salary and allowance revisions. A formal announcement on its members and terms of reference, or ToR, is still pending.

'Fitment factor' is a multiplier added to base pay that will determine salary increases.

Expected Salary Hike Range

Experts put this figure between 1.83 and 2.86, which may represent a 13–34% increase. However, after the commission's recommendations are put into effect on January 1, 2026, the DA, which is currently at 55%, will probably be reset to zero and combined with basic pay.

DA Hike Impact on Pensions

This implies that because pensions are correlated with basic pay and DA, the effective increase may be modest but still advantageous. In an effort to simplify and increase transparency in the pay structure, the 7th Pay Commission examined roughly 200 allowances, eliminating 52 and combining others.

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