A big good news has come out for lakhs of government employees of the country. The Union Cabinet chaired by Prime Minister Narendra Modi on Friday approved a 2% hike in Dearness Allowance (DA) for government employees and Dearness Relief (DR) for pensioners. After this latest increase, the dearness allowance of central government employees will increase to 55%.

Currently, employees are getting a 53% dearness allowance on salary. Giving this information, Union Minister Ashwini Vaishnav said that a 55% dearness allowance will come into effect from January 1, 2025. This decision will provide great relief to employees and pensioners and strengthen their financial position. So let us know who will benefit from this increase and what will be its impact on the government.

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More than 48 lakh employees and 66 lakh pensioners will get benefits

The government has approved this increase in the dearness allowance of the employees keeping in mind the current inflation. This decision of the central government will benefit about 48.66 lakh government employees and 66.55 lakh pensioners across the country. With this new change, the dearness allowance given to the employees will increase from 53% to 55%.

This will increase the salary of central government employees even before the 8th Pay Commission. This new increase in both dearness allowance and dearness relief will have an impact of ₹ 6614.04 crore annually on the government treasury. This is a big step for the government which reflects its commitment to the welfare of employees and pensioners.

The last increase was in July 2024

Let us tell you that this increase is as per the approved formula, which is based on the recommendations of the 7th Pay Commission. The government had earlier increased the DA of central government employees by 3% in July 2024, after which the dearness allowance given to the employees increased from 50% to 53%.

Dearness allowance is calculated from the basic salary of the employees. If the basic salary of an employee is ₹ 20,000, which 55% dearness allowance will be given. According to this, the employee will get ₹ 11,000 every month as dearness allowance.

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