A significant announcement came in 2025 for the central government employees and pensioners working under the 7th Pay Commission: the rate of dearness allowance (DA) and dearness relief (DR) was raised by 3 percentage points, thus like shifting up from 55% to 58% of the basic pay/pension, starting from 1st July 2025. This entails that the hike is implemented from the preceding month, and the arrears will be paid along with the salary/pension for October, which will include the months of July, August, September, and possibly onwards till the payment is done.
How Much Will You Gain?
As an example: a government employee whose basic salary is the lowest at ₹ 18,000 will have their DA increased from ₹ 9,900 (55%) to ₹ 10,440 (58%) every month — hence a monthly increase of ₹ 540. It accumulates to roughly ₹ 1,620 as a single payout over the three months of arrears. For the retirees with a minimum pension of ₹ 9,000, the DR goes up by around ₹ 270 per month. The retroactive payout amplifies the finances just when festival shopping and yearly expenses are peaking.
Timing & Process Of Payment
It is backward in time from 1 July 2025; however, the actual payment of arrears is linked to the central government payroll of October 2025, which means that employees/pensioners should receive the new rate along with the lump-sum arrears in October. The same practice is being observed among state governments; for instance, the Haryana government has also declared the same increment in rates and said that the arrears for the months of July-September would be disbursed along with the November pension.
What Employees & Pensioners Need To Do
- Look for the new DA/DR rate of 58% on your pay-slip or pension statement and check for the October/November 2025 arrears credited.
- Confirm calculations: ensure the increased amount is equal to the 3% rise in your basic/salary.
- Revise personal budgets: the extra money is a blessing but can be gone in one or two months; therefore, plan wisely.
- Keep yourself updated: This might be the last DA/DR change in the 7th Pay Commission; the next adjustment may only occur after the 8th Pay Commission has been put in place.
Also Read: EPFO Rule Change 2025: Get PF Money Quickly, But Govt Retains 25% For Future Security