In September 2025, the Central Government issued a notification that the DA and DR are to be increased by 6 percent for 12 million Central Government employees and pensioners. The increase comes retroactive from July 1, 2025, with arrears covering July, August, and September months, which are to be released in October-just in time for the festivities.
What are DA Arrears?
DA arrears refer to those payments which are pending to employees and pensioners on account of retrospective implementation of DA hike. Since the hike in DA is effective from July but announced only in September, the difference for these three months is paid as lump sum.
Timeline for Payment of Arrears
The government has confirmed that the arrears shall be credited in October salary and pension disbursement itself so that households can take care of the extra expenses to be incurred during Navratri, Dussehra, and Diwali time.
Benefits of DA Arrears
Receiving DA arrears offers multiple advantages:
- Extra income to manage festive expenses
- Compensation for inflation over past months
- Boost in savings or emergency funds
- Improved morale among government staff and retirees
DA Arrears Calculation Example
The DA hike applies to basic pay and pension. Here’s how the arrears add up for different salary levels:
| Basic Pay / Pension | DA Before (55%) | DA After (61%) | Monthly Increase | Arrears (3 Months) |
|---|---|---|---|---|
| ₹18,000 | ₹9,900 | ₹10,980 | ₹1,080 | ₹3,240 |
| ₹30,000 | ₹16,500 | ₹18,300 | ₹1,800 | ₹5,400 |
| ₹50,000 | ₹27,500 | ₹30,500 | ₹3,000 | ₹9,000 |
Who Will Receive DA Arrears
The following groups are eligible for DA arrears:
- Central government employees under the 7th Pay Commission
- Pensioners receiving Dearness Relief
- Employees of autonomous bodies and public sector units (PSUs)
- Senior citizens under revised old-age pension schemes
Conclusion
DA Arrears update for September 2025 would give financial relief to millions of households. The lump sum payout would ease pressure and lift morale with rising inflation and forthcoming festive spending. Employees and pensioners are encouraged to check their salary slips and bank statements in October to confirm receipt.
Also read: Government Approves 8th CPC: What Employees Can Expect in 2026