The Union Cabinet, led by Prime Minister Narendra Modi, has approved a 2% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners. This hike, effective from January 1, 2025, benefits over one crore government employees and pensioners. This is the first DA hike after the 8th Pay Commission was announced.
The government usually announces DA hikes before festivals like Holi and Diwali, but this time, the January-June cycle DA increase was delayed by 15-20 days. As a result, employees will receive their revised DA along with three months' arrears (January-March 2025) in their April salary or pension.
Since July 2018, the government has consistently increased DA by at least 3% to 4% in every revision. However, this time, only a 2% hike has been approved, making it the smallest DA increase in the last seven years.
With this hike, DA will rise from 53% to 55%. Pensioners will also receive the same 2% increase in DR. Here's how much extra employees and pensioners will receive:
If an employee’s basic salary is ₹18,000, they will receive an additional ₹360 per month (2% of ₹18,000), totaling ₹4,320 annually.
If a pensioner’s basic pension is ₹9,000, they will receive an extra ₹180 per month, amounting to ₹2,160 per year.
While the DA increase brings financial relief, many employees and pensioners expected a higher hike, especially considering past trends. Nevertheless, this increment, along with arrears, will offer some monetary relief to central government employees and pensioners as they await further revisions under the 8th Pay Commission.
