The government has sanctioned a 2% hike in Dearness Allowance (DA) for central government staff and Dearness Relief (DR) for pensioners. The Union Cabinet, headed by Prime Minister Narendra Modi, announced this decision on March 28.
The said hike is applicable from January 1, 2025, and will benefit more than one crore employees and pensioners. It should be noted that the April salaries will carry the raised DA along with arrears for the previous three months (January-March 2025), as the announcement was delayed.
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LOWER-THAN-EXPECTED DA HIKE
In the past, DA hikes were typically between 3% and 4%. But this time, the hike is only 2%, the lowest in seven years. Generally, the government announces DA hikes ahead of major festivals like Holi and Diwali. However, this time, it was announced after Holi.
HOW MUCH MORE WILL EMPLOYEES AND PENSIONERS GET?
With the 2% hike, DA has now risen from 53% to 55%. Pensioners will also experience a similar increase in their Dearness Relief (DR). Let us understand the hike with the help of an example.
If the basic pay of an employee is Rs 19,000, the DA hike will bring an additional Rs 380 per month (2% of Rs 18,000), which amounts to Rs 4,560 more annually.
Similarly, if a pensioner’s basic pension is Rs 8,000, every month he will get Rs 160 more, amounting to Rs 1,920 annually. This additional amount will provide some financial relief against inflation.
Meanwhile, the focus will now shift to the constitution of the 8th Pay Commission, as the government is likely to announce the names of panel members soon. The panel will then proceed to revise the salaries and pensions of central government employees at all levels.
