DA Hike: Before Diwali, the Central Government as well as the Governments of Bihar and Rajasthan have given a big relief to the employees and pensioners. The governments have announced a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR).
The Modi Government at the Centre had approved this hike for central employees and pensioners on 1 October 2025. Now the rate of DA has increased from 55% to 58%. This hike will be applicable from 1 July 2025. Employees will also get arrears for the three months of July, August and September. In March 2025, the government had increased 2%, due to which DA increased from 53% to 55%. Now this is the second hike.
States also implemented the decision
Soon after the Centre’s decision, the governments of Bihar and Rajasthan have also announced increase in DA for their employees.
Bihar Government: A 3% increase was approved in the cabinet meeting held on October 3. Now, all government employees, pensioners, and family pensioners in Bihar will receive DA at the rate of 58%. This will also be effective from July 1, 2025.
Rajasthan government: Chief Minister Bhajan Lal Sharma approved the increase on Friday. Rajasthan government employees will now receive 58% DA.
Why is DA hike important?
Dearness Allowance (DA), or dearness allowance, is a significant component of government employees’ salaries, helping to offset the effects of inflation. This rate is determined based on the All India Consumer Price Index (AICPI).
DA revisions are made twice a year, in January and July. This increase is considered final under the 7th Pay Commission, as the 8th Pay Commission may be implemented from January 2026. The next DA increase will be effective from January 2026, based on AICPI-IW data from July to December 2025.
