This time on Diwali, the central government can bring a big gift for its employees and pensioners. While preparations are being made to increase dearness allowance (DA) and inflation relief, on the other hand, Prime Minister Narendra Modi has said to implement GST reforms before Diwali. The benefit of this will be directly available to the general public, traders and especially government employees.
New DA came into force from January 2025
In March 2025, the Union Cabinet approved the 2% DA/DR increase for more than 48 lakh employees of the central government and more than 66 lakh pensioners, which has been implemented since January 2025. Now employees and pensioners are getting DA and DR at the rate of 55%. According to the 7th Pay Commission, the minimum base salary of central government employees is ₹ 18,000 and the minimum pension of pensioners is ₹ 9,000. With 55% DA, an employee is getting a total of ₹ 27,900 and pensioner is getting ₹ 13,950.
Preparation for July increase, good news till Diwali
Every year the government increases DA twice, in January and second in July. Now the next increase for July 2025 is expected to be announced in September. According to media reports, this time DA may increase by 3%. If this happens, DA will be 58%. This may apply around Diwali.
GST reform gift before Diwali
Prime Minister Modi has recently asked the state governments to cooperate with the central government in implementing the proposed GST reforms. He also said that these reforms will be implemented before Diwali and the poor, middle class and small and big traders will benefit from it. The Prime Minister said, we consider reforms a symbol of good governance. Our aim is to make life and business easier. So we are improving the next generation under GST. These reforms will prove to be double bonus for this Diwali people.
8th Pay Commission also on the way
In January 2025, the Central Government approved the 8th Pay Commission, but its official notification is yet to come. Minister of State for Finance Ministry Pankaj Chaudhary said in Parliament that the notification will be issued on time. This means that there can be further improvement in the salaries and pension of the employees in the future.