New Delhi, Oct 2 Central government employees in Rajasthan's Churu and Madhya Pradesh's Shahdol have expressed happiness over the 3 per cent increase in their Dearness Allowance (DA) and Dearness Relief (DR), calling it a Diwali gift from the PM Modi government. Pensioners too will benefit from the hike, which is seen as a timely move to help cope with inflation during the festive season.
In Churu, Central government employees welcomed the announcement, saying the increase would significantly improve their financial condition.
"We had been waiting for a long time, hoping that the government would raise the DA. The 3 per cent hike announced just before Diwali is great news for us. We see it as a festive gift," said one employee.
Another employee added: "I am very happy. The government is doing well in addressing inflation. This increase will definitely help us manage our expenses better."
Farmers in Churu also expressed optimism about the government’s "Mission for Aatmanirbharta in Pulses" (Self-Reliance in Pulses), saying it will enhance the economic condition of Indian farmers.
"If the government achieves its target, Indian farmers will become financially stronger. Our dependence on imports will decrease, and it will contribute to the country’s progress," said a local farmer.
In Shahdol, Central government employees will receive a festival bonus. The 3 per cent increase in DA and DR applies to lakhs of central employees and pensioners. The revised rates are effective from July 1, and employees will receive three months' arrears along with the increased salary. With this hike, the DA now reaches 58 per cent of the basic salary.
Employees expressed their gratitude to the government for the timely support.
"It’s a great initiative," said Manoj Behera, a railway employee in Shahdol.
"Inflation is rising continuously, so this increase during the festive season is very helpful."
P.S. Rao, a railway guard in Shahdol, added: "I want to congratulate everyone on Vijayadashami. A 3 per cent DA increase will definitely benefit central employees. I thank the government for this step."
Prompy Singh, another railway employee, said: "I thank the Central government for increasing the DA. However, I would like to request that DA be increased even more in the future."
The Union Cabinet, chaired by PM Narendra Modi, approved the release of an additional instalment of DA to Central government employees and DR to pensioners with effect from July 1, 2025, representing an increase of 3 per cent over the existing rate of 55 per cent of the basic pay/pension, to compensate them against the price rise.
This will benefit about 49.19 lakh Central government employees and 68.72 lakh pensioners, according to an official statement.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, an official statement said.
Arrears for July, August, and September will be paid along with the October salary, just before Diwali.
The DA and the DR are revised twice a year, in January and July, based on inflation trends measured by the All India Consumer Price Index for Industrial Workers (CPI-IW). While announcements often come later, arrears compensate for the delay. This revision is expected to be the last under the 7th Pay Commission, with the 8th Pay Commission likely to take effect in January 2026.
The revision in DA and DR was on the cards as one of the two biannual hikes in the two allowances is usually announced in March, while the other is announced in October ahead of Diwali.
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