The government has increased the Dearness Allowance (DA) for over 50 lakh employees and 65 lakh pensioners who work for the central government. The DA will go up by 12% starting from July 1, 2025. This will make the DA go from 46% to 58%. It might even go up to 60% by December 2025.

This 12% increase in DA is very big. The government is doing this to help employees deal with higher costs of living. This increase is based on the Consumer Price Index for Industrial Workers, which keeps track of how much everyday things and services cost.

The extra money for pensions will increase too. The money owed from July 2025 to March 2026 will be paid after March 2026.

Let’s look at an example: If an employee gets a basic salary of ₹40,000, their current DA is ₹18,400 (which is 46% of the basic salary). With the new increase, they will get ₹23,200 (58% of basic salary). That means they will get ₹4,800 more each month. Retired people will also get this same increase through DoNR.

Financial experts and labor unions think this is a good step because inflation makes it hard for families to pay for things. The government has made rules for this change to happen smoothly. People who will get this money should update their information and watch for news updates.

The government has said DA will reach 60% by December 2025, before the 8th Pay Commission starts in January 2026. The 8th Pay Commission will make more changes to pay and allowances to help employees and pensioners.

DA is adjusted twice a year, in January and July, to help central government employees and pensioners deal with inflation. The 8th Pay Commission will make more suggestions to improve salaries and benefits starting January 2026. Employees and pensioners should check government websites and keep their information updated so they can get their adjusted DA and back pay on time.