DA Hike 8%: The Central Government periodically increases the Dearness Allowance (DA) and Dearness Relief (DR) of employees and pensioners. Recently, the Dearness Allowance (DA) of central employees was increased by 3% under the Seventh Pay Commission, while significant increases were also made to the Dearness Allowance (DA) under the Fifth and Sixth Pay Commissions.
The government had already increased the Dearness Allowance (DA) of employees and pensioners covered under the Seventh Pay Commission. Now, the Finance Department has issued an office memorandum announcing an increase in Dearness Allowance (DA) under the Fifth and Sixth Pay Commissions.
These employees will benefit from an 8% increase
The Finance Ministry has increased the Dearness Allowance (DA) of employees paid under the Fifth Central Pay Commission. The DA rate has been increased from 466% to 474%, effective July 1, 2025.
This increase will apply to employees who are still receiving salaries based on the pre-revised pay scale. It should be noted that the Fifth Pay Commission’s term ended in December 2005, but some employees and pensioners are still receiving benefits under this commission.
DA Hike under the 7th Pay Commission
The Ministry of Finance has announced an increase in dearness allowance (DA) for employees receiving salaries under the Sixth Central Pay Commission. The DA rate has now been increased from 252% to 257%, effective July 1, 2025. This increase will apply to employees who are still receiving salaries based on the pre-revised pay scale or grade pay.
Although the Sixth Pay Commission’s term ended in December 2015, many employees and pensioners are still receiving benefits under it.
This increased dearness allowance by up to 8% for all employees.
Some central government employees are still covered by the 5th and 6th Pay Commissions, as the recommendations of the 7th Pay Commission have not been implemented in their organizations. This situation is particularly prevalent in Central Autonomous Bodies (CABs) and Central Public Sector Undertakings (CPSUs).
These institutions still have different pay structures, which are operated in accordance with the pay scales and allowances established under the 5th and 6th Pay Commissions.