Over 1.2 crore central government employees may have a lot to cheer about this Holi as the Centre may announce a raise in Dearness Allowance (DA) and Dearness Relief (DR) ahead of the festival. Usually, the government goes for a DA hike twice a year – January and July, however, the announcement is mostly made around Holi for January’s hike and Diwali for July revision.
During the Cabinet meeting in New Delhi on March 5, 2025, no discussion took place regarding a Dearness Allowance (DA) hike for central government employees.
Last year, on March 4, the Cabinet approved a DA hike, increasing it from 46% to 50% of the basic pay. Another hike in October 2025 raised the DA rate to 53%, effective from July 1, 2025.
In January 2025, the government announced the formation of the 8th Pay Commission to review salaries and allowances for central government employees, with implementation expected from January next year.