Central government employees and pensioners are awaiting the announcement of Dearness Allowance (DA/DR). Typically, this announcement for the second half of the year is made in the last week of September or early October. Employee unions have urged the Finance Minister for a timely order. The 8th Pay Commission will be implemented from January 1, 2026. A 78-day PLB has already been announced for railway employees.
7th Pay Commission: Millions of central government employees and pensioners are eagerly awaiting the announcement of Dearness Allowance (DA/DR). For the second half of 2025, this is typically made in the last week of September or early October. The Confederation of Central Government Employees and Workers has urged Finance Minister Nirmala Sitharaman for immediate intervention so that the order is issued before the festive season. Meanwhile, the 8th Pay Commission will be implemented from January 1, 2026, and a 78-day performance-based bonus has been announced for railway employees.
Current Status of DA/DR
The central government revises DA twice every year. The revision for the first half (January to June) is typically announced in March, while for the second half (July to December), it is declared in September or October. This time, there has been a delay in announcing the installment due from July 1, 2025, which has increased dissatisfaction among employees and pensioners. Employees are usually also given arrears for two or three months.
The Confederation of Central Government Employees and Workers wrote a letter to the Finance Minister stating that this delay is causing “serious dissatisfaction” among employees and pensioners. They requested that the DA/DR order be issued on time so that September's salary can be disbursed along with arrears.
How DA is Calculated
Dearness Allowance is calculated based on the All-India Consumer Price Index (CPI-IW). The formula is: DA (%) = [(Average of CPI-IW for the last 12 months – 261.42) ÷ 261.42] x 100. This index is released by the Labour Bureau and monitors inflation. The current base year for calculation is 2016. This helps in maintaining the real income of employees and pensioners.
Festive Season and Bonus
The Confederation of Central Government Employees and Workers also stated that Productivity-Linked Bonus (PLB) and Ad-hoc Bonus should be announced before Durga Puja and other festivals. The union requested that the government issue orders on time so that employees can get relief before the festive season.
Status of the 8th Pay Commission
Central government employees have also been waiting a long time for the formation of the 8th Pay Commission. According to the government, the 8th Pay Commission will be implemented from January 1, 2026. Under this commission, the salaries of central government employees are expected to increase by 30 to 34 percent. Compared to previous commissions, the formal process for this commission has been slightly longer this time, leading to disappointment among employees.
Bonus for Railway Employees
Providing significant relief to railway employees, the Union Cabinet announced a Performance-Based Bonus (PLB) equivalent to 78 days' wages on September 24. The payment of this bonus will place a burden of approximately 1,866 crore rupees on the central government's exchequer. The Union Cabinet has approved this amount for 10,91,146 railway employees. This year too, PLB has been disbursed to railway employees before Durga Puja and Dussehra.
Employees' Expectations
The eyes of central government employees and pensioners are now on the Finance Ministry. They are hoping that the DA/DR announcement will be made in the last week of September or the first week of October. This would enable them to receive their salaries and pensions on time, along with pending arrears. Employee unions are continuously urging the government to issue orders promptly.
