DA Hike Update: The central government has approved a 2% increase in dearness allowance (DA) and dearness relief (DR) for employees and pensioners. This will increase the salary and pension of the employees. This new dearness allowance will be applicable from January 2025
DA Hike Update: The central government is preparing to give a 2% increase in dearness allowance (DA) and dearness relief (DR) for employees and pensioners. But no official information has come on this yet. If the government increases the dearness allowance, it will be applicable from January 2025. That is, central employees will get 2 months’ arrears along with the increased amount in the March salary.
How much dearness allowance is being received till now?
Till now the dearness allowance of central employees is 53%. If the government increases it before Holi, it will increase to 55 percent. The government last increased the dearness allowance by 3% in October 2024. However, this is the lowest increase in the last 7 years, as usually the government has been increasing at least 3% or 4%.
DA was stopped during the Corona period, demands still unfulfilled
During the pandemic, the government had stopped DA hike for 18 months from January 2020 to June 2021. Employees unions have been continuously demanding arrears for this period, but no decision has been taken on this so far. The government increases DA twice every year—once for January-June and second time for July-December. As per tradition, DA for January-June is announced in March and July-December in October-November.
How is DA decided?
Dearness allowance is calculated on the basis of All India Consumer Price Index (AICPI-IW), which is released by the Labor Bureau. The government decides the hike based on the average data of the last 6 months.
Will government employees get more relief?
At present, more than 1 crore central employees and pensioners will benefit from this decision of the government. However, the demand of the employee unions was that the DA should be increased by 3% or more, but the government has increased it by only 2%. Now everyone’s eyes are on the next DA revision and the recommendations of the 8th Pay Commission. The 8th Pay Commission will be implemented in the country from next year 2026.
