DA Hike Update, 7th Pay Commission: Finally good news has come for central employees. Know how much increase has been announced in DA by the government…
Dearness Allowance Latest News: The wait of central employees is finally over. The Union Cabinet has approved a 2 percent increase in the dearness allowance of central employees in the meeting held today i.e. on 28 March 2025. With this amendment, the DA of central employees will increase from 53% to 55%, which will increase the salary of the employees before the estimated 8th Pay Commission.
Earlier the last increase was in July 2024, when DA was increased from 50% to 53%.
This increase in DA and DR for more than 1 crore serving employees and pensioners of the Central Government will be effective from January 1, 2025. Since the announcement of this hike has already been delayed by at least 15-20 days, the salary and pension for the month of April will also see the increased DA along with arrears of three months (January to March 2025).
First DA hike after the announcement of the 8th Pay Commission
This is the first DA hike after the announcement of the 8th Pay Commission. The government had announced the formation of the 8th Pay Commission on January 16, 2025, which will come into effect from January 1, 2026. It may take at least a year for the new recommendations to come, which means the next DA hike (for the July-December 2025 cycle) around Diwali later this year will be the last under the 7th Pay Commission.
DA increased less than expected
The government usually announces biannual DA hike every year before festivals like Holi and Diwali, but this time the hike was not announced for the January-June period before the Holi festival. As far as the amount of increase is concerned, this is the lowest increase in the last 7 years. Since July 2018, the government has been increasing at least 3% or 4% every time, but this time there has been an increase of only 2%.
What is DA?
DA means Dearness Allowance, which is called dearness allowance in Hindi. This allowance, which is directly linked to the basic salary of a government employee, is increased twice a year. The government revises 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 not usually entitled to it. Employees working in public sector undertakings (PSUs) also get dearness allowance.
How much will the employees and pensioners benefit?
If the basic salary is Rs 18,000, a 2% hike will 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, which will give an annual benefit of Rs 2,160.
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