This festive season, Central government employees are in for a financial windfall as three major announcements converge ahead of Diwali 2025. From a hike in Dearness Allowance (DA) to a likely Diwali bonus and fresh momentum on the 8th Pay Commission, over 1.2 crore employees and pensioners could see a significant boost in their earnings.
The Three Big Gains
1. DA Hike to 58%
- The government is expected to announce a 3% increase in DA, raising it from 55% to 58% of basic pay.
- This hike will be effective from July 2025 and paid with arrears in the October salary.
- For an employee with ₹18,000 basic pay, this means an additional ₹540 per month.
2. Diwali Bonus
- A festival-linked performance bonus is likely for eligible categories, including Group B and C employees.
- Past trends suggest bonuses ranging from ₹7,000 to ₹10,000 depending on grade and tenure.
- This one-time payout is expected to be credited before October 20, just ahead of Diwali.
3. 8th Pay Commission Momentum
- The government has given in-principle approval for the 8th Pay Commission, set to overhaul salaries and pensions from January 2026.
- Terms of Reference (ToR) and commission appointments are expected by October.
- If implemented, salaries could rise by 30–34%, benefiting over 1.15 crore employees and pensioners.
Civic Impact
- Household Relief: The combined effect of DA hike and bonus offers immediate relief amid inflation.
- Long-Term Gains: The 8th Pay Commission promises structural salary reform, improving financial stability.
- Festive Planning: Employees can better manage travel, gifting, and savings during the festive season.
“This Diwali could bring not just light, but financial clarity for millions of families,” said a senior official familiar with the developments.