The central government is preparing to surprise its employees and pensioners this Holi. According to media reports, the central government may give good news to its employees and pensioners before Holi. This year Holi is on March 14 and there is speculation that the government may announce a hike in dearness allowance (DA) and dearness relief (DR) for central employees and pensioners before the festival begins. The upcoming hike in DA and DR is aimed at providing relief from inflation. Currently, central government employees and pensioners are paid under the 7th Pay Commission. Till now DA/DR is increased twice a year. The first hike comes into effect from January 1 and the second from July 1. In other words, the first DA hike of 2025 will be effective from January 1, 2025. The official announcement can be made in March 2025 and the arrears will be paid for the period from January to March. It is worth mentioning that in October last year, the government had increased DA/DR by 3% to 53%.

7th Pay Commission: How much increase is expected in DA/DR?

According to employee unions, the government may announce a 3-4% hike in DA/DR for central employees and pensioners. Currently, central government employees get Rs 18,000 as the minimum basic salary. At the same time, central government pensioners get Rs 9,000 as a minimum basic pension.

Increase in basic salary for employees.

If a person's current minimum basic salary is Rs 18,000 and DA is increased by 3% for January 2025, then his minimum salary will increase by Rs 540.

Under the current 53% DA, he is entitled to a salary (minimum basic salary + DA) of Rs 27,540. However, if the DA is increased to 56%, he will be paid Rs 28,080.

If the DA is increased by 4%, it becomes 57%. At this rate, the minimum basic salary will increase by Rs 720 to Rs 28,260 per month.

For pensioners

If a person's current minimum basic pension is Rs 9000 and the DA is increased by 3% for January 2025, his minimum salary will increase by Rs 270.

Under the current 53% DA, he is entitled to a pension (minimum basic salary + DA) of Rs 13,770. However, if the DA is increased to 56%, he will be paid Rs 14,040.

If DA is increased by 4%, it becomes 57%. At this rate, the minimum basic salary will increase by Rs 360 to Rs 14,130 per month.