7th Pay Commission, DA Hike 2025, Dearness Allowance Hike News: Central government employees get relief from inflation due to increase in DA. Know when DA can be announced…
DA Hike 2025 Update: The decision to increase the Dearness Allowance (DA) and Dearness Relief (DR) of central government employees and pensioners has not been taken yet. The decision to increase DA has been delayed by about a week. Let us tell you that more than 1 crore government employees were waiting for the decision to increase DA before Holi. After this, the news came that the employees could get good news in the Union Cabinet meeting to be held on March 19, but this also did not happen.
Now, according to sources in the report of our associate Financial Express, it has been said that the government can announce this decision at any time. According to the information, this decision has been delayed due to government procedures and financial approvals.
What is DA and who gets it?
This allowance, which is directly linked to the basic salary of a government employee, is increased twice a year. The government revises the DA to reduce the impact of inflation on employees and pensioners.
It applies to existing central government employees and pensioners as a cost of living adjustment, while private sector employees are generally not entitled to it. Employees working in public sector undertakings (PSUs) also receive dearness allowance.
Usually, the government announces DA hike for January-June before Holi and for July-December before Diwali. But this time, the hike for the January-June 2025 cycle could not be announced before Holi. It is believed that a 2 per cent hike is possible, which will increase DA from 53 per cent to 55 per cent. Based on AICPI (All-India Consumer Price Index Data) for July-December 2024, a 2% hike in DA is expected.
Now when will the decision on DA hike come?
Since this decision has already been deferred, the government can approve it in the next cabinet meeting, which is expected to be held next week. Once approved, the increased DA will be effective from January 2025 and employees can also get the arrears of January, February and March when they receive the salary for the month of April.
How much will employees and pensioners benefit?
If the basic salary is Rs 18,000, a 2% increase would result in an increase of Rs 360 per month, i.e. an additional benefit of Rs 4,320 in a year.
Similarly, if the basic pension is Rs 9,000, there will be an increase of Rs 180 per month, giving an annual benefit of Rs 2,160.
But experts believe the DA hike will be more than 2% and could even go up to 4% as the RBI has revised its inflation forecast for the current fiscal year to 4.8% from the earlier 4.5%.
Now everyone’s eyes are on the government’s decision regarding DA!
The increased DA for government employees and pensioners will not only bring a hike in salary but will also provide some relief from inflation. However, this time the increase is likely to be less than last year, which may reduce the expectations of the employees a bit. Now everyone’s eyes are on the government to see when and in what form this decision comes!
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