Big Diwali Gift for Central Govt Employees! DA Hiked Up to 8% & Arrears for 5th & 6th CPC Staff & Pensioners

Offering relief to a segment of central government staff, the Finance Ministry has announced a fresh hike in the Dearness Allowance (DA) for those drawing salaries or pensions under the 5th and 6th Pay Commissions. This update follows a previous revision for those under the 7th Pay Commission. The changes were communicated through an Office Memorandum by the ministry.

DA Hike Increased Up To 8% For Central Government Employees

An Office Memorandum (OM) issued by the Ministry lays out the revised rates and the implementation timeline, which will bring financial respite to employees and pensioners in this bracket. For employees receiving salaries under the 5th Pay Commission, the DA rate has been increased from 466% to 474% of basic pay. This adjustment is effective from 1st July, 2025.

The 5th Pay Commission's term officially concluded in December 2005, but certain central autonomous bodies and organizations have continued to follow the older pay scales, and their employees remain eligible for this revision.

6th Pay Commission DA Hiked to 257% of Basic Pay, Effective from July 1, 2025

Likewise, for staff and pensioners whose pay structure falls under the 6th Pay Commission, the DA has been enhanced from 252 percent to 257 percent of basic pay, also backdated to July 1, 2025. This adjustment comes as many in public sector enterprises and central organisations still operate under pre‑revised pay scales because the later pay commission recommendations were not adopted by every entity.

These revised DA rates are intended to be inclusive, meaning that the new percentage will apply consistently across the relevant pay scales for both current employees and pensioners. According to the OM, "the rate of DA for employees ... as per the 5th Central Pay Commission has been increased ... and it will be effective from July 1." Similarly, "the rate of DA for employees who are drawing their pay ... as per the 6th Central Pay Commission stands increased ... effective on July 1, 2025."

Since some central organisations did not transition to the 7th Pay Commission even when it was adopted in other departments, a number of staff continue to draw pay under the 5th or 6th schemes. This includes employees of certain Central Autonomous Bodies (CABs) and Central Public Sector Enterprises (CPSEs), who did not see their pay scales revised under newer frameworks.

The revised DA will be disbursed along with arrears for the period from July 1, 2025 until the date of payment, bringing a lump-sum benefit to the affected employees and pensioners.

The Finance Ministry has directed all concerned stock exchanges, clearing corporations, depositories, and administrative departments to ensure smooth implementation of the new rates and timely processing of the payments.