DA hike BIG update: Modi govt’s Diwali bonanza for central employees, 8% DA hike to come into effect from…, its applicable for…

The decision to increase dearness allowance under the 5th and 6th Pay Commissions comes days after the Narendra Modi-led central government announced a 3 percent DA hike for employees and pensioners under the 7th Pay Commission.

DA Hike news: In a major relief for millions of central government employees and pensioners ahead of Diwali, the Union government has announced a hike of up to 8 percent in dearness allowance under the 5th and 6th Pay Commissions.

How much DA hike under 5th Pay Commission and 6th Pay Commission?

According to the Union Finance Ministry, central government employees and pensioners who are receiving salaries under the 5th Pay Commission, will receive a 8 percent DA hike, from  466 percent to 474 percent. Notably, while the term of the 5th Pay Commission ended in December 2005, some employees and pensioners are still paid according to this scale.

Similarly, the DA for employees and pensioners who are paid under the 6th Pay Commission has been increased from 252 percent to 257 percent, a hike of 5 percent, the ministry announced. The 6th Pay Commission term ended in 2015, following which the recommendations of the 7th Pay Commission were implemented.

The revised DA rates will be effective retrospectively from July 1, 2025, the ministry informed.

7th Pay Commission DA hike

The decision to increase dearness allowance under the 5th and 6th Pay Commissions comes days after the Narendra Modi-led central government announced a 3 percent DA hike for employees and pensioners under the 7th Pay Commission, benefiting around 49.19 lakh central government employees and 68.72 lakh pensioners.

Notably, the Centre revises DA/DR twice a year. The last revision, announced in March, was effective from January 1, 2025, when the DA was hiked by 2 percent, taking the DA/DR rate to 55 percent.

When will DA hike come into effect?

Earlier, I&B Minister Ashwini Vaishnaw had informed that the 3 percent DA hike over existing rate of 55 per cent of the basic pay/pension to compensate against the price rise, will come into effect retrospectively from July 1, 2025.

The decision was taken at a meeting of Union Cabinet led by Prime Minister Narendra Modi, and is set to benefit around 49.19 lakh central government employees and 68.72 lakh pensioners, Vaishnaw said.

The minister said the combined impact on the exchequer on account of an increase in DA and DR will be Rs 10,083.96 crore per annum, adding that the DA hike is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.