7th Pay Commission news: Millions of central government employees and pensioners are eagerly awaiting DA/DR (dearness allowance and dearness relief) announcement from the Centre. The DA is revised twice every year, and the second revision is due now.
In this regard, the Confederation of Central Government Employees & Workers has written a letter to Finance Minister Nirmala Sitharaman, demanding immediate intervention.
The Confederation states in the letter, this is 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.”
The letter further said that there is “severe discontent” amongst employees and pensioners over the delay in the announcement.
When is DA/DR announced?
The government announces DA for employees and DR for pensioners twice a year: in March for the first half (January to June) and in September/October for the second half (July to December). The DA revision for the second half of the year is usually announced in the last week of September or the first week of October. In any case, employees receive two or three months’ arrears along with an increased salary or pension. Now with just a few days left for the month to end, employees are hoping that the government will announce DA hike so that they get their September salary along with arrears.
How is DA calculated?
DA is calculated using a formula based on the All India Consumer Price Index for Industrial Workers (CPI-IW). The specific formula provided by The Financial Express is: DA (%) = [(Average of CPI-IW for the last 12 months – 261.42) ÷ 261.42] x 100. The Consumer Price Index (CPI) is released by the Labour Bureau and tracks inflation, helping to maintain the real income of employees and pensioners, with a base year of 2016 for current calculations.
Questions about the festive season and bonuses
The the Confederation of Central Government Employees & Workers also stated that with the Durga Puja festival approaching, the Productivity Linked Bonus (PLB) and ad hoc bonuses should also be announced. The letter demanded that the government immediately issue an order so that employees and pensioners can get relief before the festival.
“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,” the letter said.
Delay in the 8th Pay Commission
Meanwhile, the long wait of employees for 8th Pay Commission formal notification and the setting up of the panel still continues, leaving them disappointed. Compared to previous commissions, the formal formation process has been a bit longer this time. The July-December 2025 DA hike would be the last revision announced under the 7th Pay Commission, which is expected to end its term on December 31, 2025