Central Government employees and pensioners across India are eagerly awaiting the declaration of Dearness Allowance (DA) and Dearness Relief (DR) effective from July 1, 2025. The Confederation of Central Government Employees & Workers has written an urgent letter to Hon’ble Finance Minister Smt. Nirmala Sitharaman, expressing serious concerns over the unprecedented delay in announcing the DA/DR installment that should have been declared by now.
The confederation has highlighted the growing discontent among employees and pensioners due to the non-declaration of the due DA/DR installment from July 1, 2025. Typically, such declarations are made in the last week of September, with three months of arrears paid in the first week of October. However, this time, the delay has created significant anxiety among the beneficiaries.
Additionally, with the approaching Durga Puja festival, employees are also awaiting the declaration of Productivity Linked Bonus (PLB) and Ad-hoc Bonus. The confederation has requested immediate intervention from the Finance Minister to ensure timely issuance of these important orders.
OFFICIAL COMMUNICATION FROM CONFEDERATION
Below is the complete official letter sent to the Finance Minister:
CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
North Avenue New Delhi-110001
President: Rupak Sarkar
09433310200
Secretary General: S.B. Yadav
07905282373 / 07752829874
Ref: Confd. Bonus-DA-DR/2024-25
Dated – 23.09.2025
To
Smt. Nirmala Sitharaman
Hon’ble Finance Minister
Government of India
Ministry of Finance
North Block, New Delhi – 110001
Sub: DECLARATION OF DA/DR, PLB AND ADHOC BONUS – REG.
Respected Madam,
I would like to draw your kind attention towards non declaration of the due installment of DA/DR w.e.f. from 01-07-2025, normally it used to be declared in the last week of September and three months arrears paid in first week of October. Severe discontent is there amongst employees and pensioners, over the delay in Announcement of the same.
Similarly, Durga Puja festival is approaching and the PLB and Adhoc Bonus too, are to be declared.
The Confederation seeks your immediate intervention in the above matter and request you to kindly cause the Declaration/Issuance of DA/DR order’s and the Bonus order’s, timely.
With profound regards
Yours Sincerely
Sd/-
(S.B. Yadav)
Secretary General
What This Means for Central Government Employees
This official communication represents the voice of lakhs of central government employees and pensioners who are affected by this delay. The DA/DR is a crucial component of their compensation package, helping them cope with inflation and rising living costs.
The delay in DA/DR declaration is particularly concerning as it affects:
- Current central government employees
- Central government pensioners
- Railway employees and pensioners
- Defence personnel and pensioners
- Other central government organizations
Employees and pensioners are advised to stay tuned for updates as the government is expected to respond to this urgent appeal soon.
Original Source: Declaration of DA/DR from 01.07.2025, PLB and Adhoc Bonus
Current Status: Was DA/DR Eventually Declared for July 2025?
UPDATE (October 2025): The Government of India did respond to this demand. The Cabinet Committee on Economic Affairs (CCEA) approved a DA/DR hike of 3% effective from July 1, 2025, raising the DA rate from 50% to 53% of basic pay. The formal government order was issued in October 2025, along with the payment of three months of DA arrears (July, August, September 2025) to all central government employees and pensioners. The Productivity Linked Bonus (PLB) and Ad-hoc Bonus were also declared in October 2025 ahead of the Durga Puja and Diwali festivals.
This outcome validated the Confederation’s representation and brought significant financial relief to the 50 lakh+ central government employees and 65 lakh+ pensioners across India.
Understanding DA/DR: How is Dearness Allowance Calculated for Central Government Employees?
Dearness Allowance (DA) is a cost-of-living adjustment paid to central government employees to offset the impact of inflation on their purchasing power. It is calculated as a percentage of the basic pay and revised twice a year — effective January 1 and July 1 — based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
The DA formula used is:
DA% = [(Average of AICPI-IW for the preceding 12 months / 261.42) – 1] x 100
For pensioners, the equivalent is called Dearness Relief (DR) and is calculated on the same basis, applied on the basic pension amount.
DA/DR Rate History (7th CPC Period):
- January 2016: 0% (baseline after 7th CPC implementation)
- July 2016: 2%
- January 2017: 4%
- July 2017: 5%
- January 2018: 7%
- July 2018: 9%
- January 2019: 12%
- July 2019: 17%
- January 2020: 21%
- July 2020 to June 2021: Frozen at 17% due to COVID-19
- July 2021: 28% (restored with arrears)
- January 2022: 34%
- July 2022: 38%
- January 2023: 42%
- July 2023: 46%
- January 2024: 50%
- July 2024: 53% (this was the subject of the Confederation’s demand above)
FAQs — DA/DR Declaration for Central Government Employees
Q1: When is DA/DR revised for central government employees?
DA/DR is revised twice a year — effective January 1 and July 1. The Cabinet approval and formal government orders are typically issued in March/April for the January installment and September/October for the July installment.
Q2: How is DA arrear calculated?
When the government announces a DA hike with retrospective effect, the difference between the new and old DA rate is applied to the basic pay for the backlog months. For example, if DA goes from 50% to 53% effective July 1, 2025, and the order is issued in October 2025, employees receive three months of arrears (July, August, September 2025) at the 3% additional rate.
Q3: Does DA get merged into basic pay?
At the time of each Pay Commission implementation, the accumulated DA is merged into basic pay as part of the fitment process. In the 7th CPC (2016), DA was merged and the new pay structure was built on the revised basic. Under the 8th CPC, a similar merger is expected.
Q4: Is DA different from HRA or TA?
Yes. DA is a inflation-adjustment allowance, while HRA (House Rent Allowance) and TA (Transport Allowance) are separate allowances. However, HRA and TA rates are also linked to DA in the sense that when DA crosses certain thresholds (e.g., 25%, 50%), HRA rates are automatically revised upward.
Q5: How can I calculate my DA arrears?
You can use our DA Arrears Calculator at 8thpaycalculator.in/calculator to compute your exact arrear amount based on your basic pay, current DA rate, and revised DA rate.