DA Arrears: Great news for central employees just ahead of the new financial year! The Union Cabinet approved a 2 percent hike in the dearness allowance (DA) for government workers on Friday, bringing the total DA to 55 percent. This follows a previous increase of 3 percent, from 50 to 53 percent, that was approved last October before Diwali. This latest decision will boost the salaries of central employees and the pensions of retirees.

So, when can you expect the arrears? The new dearness allowance will be effective from January 1, 2025, meaning employees and pensioners will receive arrears. Many are wondering when these arrears will be paid out. The central government plans to distribute the arrears for January, February, and March along with the April salary to the thousands of employees and pensioners under its purview.

Curious about how much arrears you’ll get? For government employees with a minimum basic salary of Rs 18,000 per month, their monthly salary will rise by Rs 360. This means they will receive Rs 1,080 in arrears for the first three months of the year. Meanwhile, basic pensioners with a pension of Rs 9,000 will see an increase of Rs 180 per month, resulting in arrears of Rs 540 for the same period.

The government typically raises the dearness allowance twice a year, taking into account inflation and price indices to maintain the real value of earnings for employees and pensioners. The first increase is effective from January 1 and is usually announced in March, while the second increase takes effect from July 1 and is typically announced in October.

Will the DA be combined after the 8th Pay Commission?

It’s important to mention that Prime Minister Narendra Modi gave the green light for the 8th Pay Commission for central employees back in January. However, the commission hasn’t been set up yet, and the names of the three-member committee are still under wraps. The formation of the Eighth Pay Commission is anticipated by the end of April. Once it’s in place, the dearness allowance for central employees will be integrated into their basic salary, resulting in their DA being reduced to zero.