A planned increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, set to take effect from July 1, 2025, has been delayed, causing frustration and “discontent” among many.
Thank you for reading this post, don't forget to subscribe!On September 24, 2025, the Union Cabinet announced a performance-linked bonus for railway employees but did not approve the anticipated DA/DR hike. This has drawn criticism, with the Confederation of Central Govt Employees & Workers (CCGEW) sending a letter to Finance Minister Nirmala Sitharaman expressing disappointment.
The letter noted that DA hikes are typically announced in late September, with arrears paid in early October, but the delay has left employees and pensioners concerned, especially with the festive season approaching.
Based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW) data, a 3% hike is expected. If approved, this would raise the DA/DR rate to 58% of the basic salary or pension. This would also likely be the final increase before the official notification of the 8th Pay Commission.
