In a move that has left many happy and surprised, the central government has raised the Dearness Allowance to 59 percent for its workers and pensioners. This is part of the 7th Pay Commission rules. The hike comes at a time when prices of things are going up, and it will help more than 50 lakh workers and 62 lakh pensioners. People are calling it a big gift before festivals start. The news came out recently, and everyone is talking about how much extra money they will get in their pockets.
What Does This DA Hike Mean?
Dearness Allowance, or DA, is extra pay given to government workers to fight rising costs of living. It is like a shield against high prices of food, fuel, and other needs. This time, the government added 4 percent more to the old DA of 55 percent, making it 59 percent now. This is the last big change under the 7th Pay Commission before new rules come next year. Workers say this will make life easier, especially with school fees and house rents going up every day.
How Do They Decide the DA Amount?
The government looks at something called the All India Consumer Price Index for Industrial Workers, or AICPI. This number shows how much prices have changed over months. For this hike, they checked data from January to June 2025. The index went up a bit, like from 143 in March to 144 in May. They use a simple math: take the average of 12 months’ index, minus a base number, then multiply by 100. If the number is not whole, they round it up or down. This way, DA matches real life costs.
Big Changes in Pay and Examples
This 59 percent DA means salaries will jump a lot. For a worker with basic pay of 18,000 rupees a month, the DA part was 9,900 rupees before. Now, it becomes 10,620 rupees, so extra 720 rupees every month. Higher level workers get even more. Here is a small table showing examples for different basic pays:
| Basic Pay (Rs) | Old DA at 55% (Rs) | New DA at 59% (Rs) | Extra per Month (Rs) |
|---|---|---|---|
| 18,000 | 9,900 | 10,620 | 720 |
| 25,500 | 14,025 | 15,045 | 1,020 |
| 56,900 | 31,295 | 33,571 | 2,276 |
| 78,800 | 43,340 | 46,492 | 3,152 |
This extra money will add up over the year and help families plan better.
Good News for Old Pensioners Too
Pensioners, who get Dearness Relief or DR, will also see their monthly money go up by the same 4 percent. If a pension is 20,000 rupees, the new DR adds about 800 rupees more. This is important for old people who depend on this to buy medicines and food. The government says this will reach all, including those in far villages. Many pensioners are thanking the leaders for thinking about them in tough times.
When Will the Money Come?
The hike starts from July 1, 2025, but the announcement came later. So, workers will get back money for July and August in their next pay. By October, everyone should see the full change. Some say it might come with festival bonus too. This boost is timely as Diwali is near, and people can spend more on sweets and gifts. Overall, this DA jump has brought smiles to many homes across India.