New Delhi, Oct 2 (NationPress) Employees of the central government in Churu, Rajasthan, and Shahdol, Madhya Pradesh, are expressing their joy over the recent 3 percent increase in their Dearness Allowance (DA) and Dearness Relief (DR). They regard this adjustment as a Diwali gift from the administration led by PM Modi. This increase is also set to benefit pensioners, marking a well-timed intervention to assist in managing inflation during the festive period.

In Churu, central government staff received the announcement positively, indicating that this increase will greatly enhance their financial situation.

One employee remarked, “We had been eagerly anticipating a DA raise from the government. This 3 percent increase right before Diwali feels like a festive blessing.”

Another shared their satisfaction: “I am thrilled. The government is effectively tackling inflation, and this uplift will certainly aid in better managing our costs.”

Local farmers in Churu also expressed hope regarding the government’s initiative, “Mission for Aatmanirbharta in Pulses”, believing it would bolster the financial status of Indian farmers.

A farmer noted, “If the government meets its goals, it would strengthen our financial independence and reduce our reliance on imports, aiding the nation's progress.”

In Shahdol, central government employees will receive a festival bonus. The 3 percent increase in DA and DR applies to millions of central staff and pensioners. Effective from July 1, employees will receive three months' arrears along with their enhanced salaries, bringing DA to 58 percent of their basic pay.

Employees expressed their gratitude for this timely support. “It’s a commendable initiative,” stated Manoj Behera, a railway worker in Shahdol.

“Inflation keeps rising, so this increase during the festive season is extremely beneficial.”

P.S. Rao, a railway guard, added, “Congratulations to everyone on Vijayadashami! This 3 percent DA hike is sure to support central employees, and I appreciate the government for this action.”

Prompy Singh, another railway employee, remarked, “I thank the Central government for this DA increase. However, I would like to see an even larger hike in the future.”

The Union Cabinet, under the leadership of PM Narendra Modi, authorized the release of an additional instalment of DA for central government employees and DR for pensioners effective from July 1, 2025, reflecting a 3 percent increase over the existing rate of 55 percent of basic pay/pension to counter inflation.

This decision is projected to benefit approximately 49.19 lakh central government employees and 68.72 lakh pensioners, as per an official announcement.

This adjustment aligns with the established formula based on the recommendations from the 7th Central Pay Commission, as stated in an official report.

Back payments for July, August, and September will be included with salaries in October, just in time for Diwali.

The DA and DR are revisited biannually in January and July, depending on inflationary trends gauged by the All India Consumer Price Index for Industrial Workers (CPI-IW). Although announcements may be delayed, arrears help offset this lag. This is anticipated to be the final revision under the 7th Pay Commission, with the 8th Pay Commission expected to commence in January 2026.

The DA and DR adjustments were anticipated as one of the two regular mid-year increases is generally declared in March, while the other is made in October ahead of Diwali.