DA Hike: The government is continuously providing good news for central employees before Diwali. Following the increase in dearness allowance (DA) for central employees under the 7th Pay Commission, the government has now revised the basic allowances for employees receiving salaries and pensions under the 5th and 6th Pay Commissions. This was announced by the Ministry of Finance through an Office Memorandum.
How much DA increase under the 5th Pay Commission?
The Finance Ministry stated in its order that the DA of employees under the 5th Central Pay Commission has been increased from 466% to 474%, an increase of 8%, effective July 1, 2025. Simply put, these employees will now receive a dearness allowance of 474% on their basic pay. When did the Fifth Pay Commission end?
The 10-year term of the Fifth Pay Commission ended in December 2005, after which the Sixth Pay Commission was formed, whose term began in January 2006 and lasted until December 2015. However, a section of government employees still receive pensions under the Fifth and Sixth Pay Commissions. Their pay structure remains in accordance with the Fifth and Sixth Pay Commission norms. After the term of one Pay Commission ends, dearness allowance is merged into the basic pay as soon as the term of the new Pay Commission begins.
How much DA increase under the 6th Pay Commission?
According to the Sixth Central Pay Commission, the DA rate for employees receiving the pre-revised pay scale/grade pay has been increased from the current 252% of the basic pay to 257%, effective July 1, 2025.
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Recently, the Union Cabinet increased the DA and DR by 3% for approximately 49.19 lakh central government employees and 68.72 lakh pensioners. DA and DR were currently 55% of the basic pay/pension, and after the three percent increase, it has become 58%. This is effective from July 1.
The increase in DA and DR will have a total annual impact of ₹10,083.96 crore on the exchequer. It should be noted that the central government revises DA and DR twice a year. Previously, the DA and DR were increased in March, effective from January 1.