Central government employees and pensioners are set to receive positive news regarding their salaries and pensions. A substantial increase in Dearness Allowance (DA) is expected before Holi, potentially benefiting over one crore employees and retirees.
The upcoming festival of Holi in 2025 may bring added joy to central government employees and pensioners. According to reports, an official announcement regarding a DA hike is likely before the festival, which falls on March 14 this year. This increment aims to ease inflationary pressure and is expected to lead to a significant rise in both salaries and pensions.
As per the 7th Pay Commission, Dearness Allowance is revised twice annually—once in January and again in July. The first revision of 2025 is applicable from January 1, and official confirmation of the increment is anticipated in March. However, the government has yet to make an official statement on this matter.
Employee organizations suggest that the government may raise DA by 3% to 4% in March 2025. If this happens, an entry-level central government employee with a basic salary of ₹18,000 per month could see an increase of ₹540 to ₹720 in monthly earnings starting January 1, 2025.
For example, if a government employee earns ₹30,000 per month with a basic salary of ₹18,000, they currently receive ₹9,000 as DA, which is 50% of their basic pay. With a 3% DA hike, the DA amount would rise to ₹9,540, an increase of ₹540. A 4% hike would raise it to ₹9,720.
The DA hike will not only benefit active employees but also pensioners. More than one crore central government employees and retirees are expected to gain from this revision. While working employees receive Dearness Allowance (DA), pensioners receive a similar benefit known as Dearness Relief (DR).
In 2024, the government raised DA by 3% in October, increasing it from 50% to 53%. Earlier, in March 2024, a 4% hike had pushed DA to 50%.
Dearness Allowance is determined based on the All India Consumer Price Index (AICPI). The government considers the average AICPI data of the past 12 months to finalize the percentage increase in DA and Dearness Relief.
