The Central government is likely to announce a 3-4% Dearness Allowance (DA) hike before Diwali 2025, benefiting over 1.2 crore employees and pensioners. Currently at 55%, DA is revised biannually based on CPI-IW inflation trends. This festive hike will boost salaries, ease inflation pressures, and provide temporary relief while the demand for the 8th Pay Commission continues.