DA news: DA for pensioners explained, who is eligible, impact of revision, pay structure and other details — SkimNews
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- Dearness Relief (DR) is paid to retired central and state government employees, railways and defence personnel, public sector staff, and bank employees — covering approximately 65 lakh pensioners across various pay scales.
- Dearness Allowance (DA) and DR are provided only to public sector employees and retirees in India, with the private sector offering neither for active staff or pensioners.
- DA is revised biannually based on the 12-month average of the All-India Consumer Price Index (AICPI), with announcements in early March and October followed by rollouts in January and July.
- Under the 7th Central Pay Commission, there have been 10 DA hikes since 2021, including the highest single increase of 11% in July 2021 and the most recent hikes of 2% in January 2025 and 3% in July 2025.
- NC-JCM, Maharashtra Old Pension Organisation, and AIDEF have submitted detailed demands to the commission calling for comprehensive pension restructuring, improvements and parity in payments.
Why it matters: With biannual DA revisions directly shaping monthly pension payouts, the 3% July 2025 hike delivers incremental inflation relief to roughly 65 lakh public sector retirees — yet federations argue the framework still needs full restructuring to achieve true payment parity.
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