Major update for central govt employees. The central government is gearing up to surprise its employees and pensioners this Holi. Media reports suggest that there might be some good news coming their way just before the festival. With Holi falling on March 14 this year, there’s a lot of buzz about a potential increase in the dearness allowance (DA) and dearness relief (DR) for both central government employees and pensioners ahead of the celebrations.
This anticipated boost in DA and DR is intended to help ease the burden of inflation. Right now, employees and pensioners are under the 7th Pay Commission, and the DA/DR is adjusted twice a year. The first adjustment kicks in on January 1, while the second one takes effect on July 1.
To put it simply, the first DA hike for 2025 will start on January 1, 2025, with an official announcement likely in March 2025. Arrears will be paid to cover the period from January to March. It’s worth noting that last October, the government raised the DA/DR by 3%, bringing it to 53%.
What’s the anticipated increase in DA/DR? Employee unions are predicting a 3-4% rise for central employees and pensioners. Currently, the minimum basic pay for central government employees is Rs 18,000, while pensioners receive a minimum basic pension of Rs 9,000.
Boost in Basic Pay for Employees
If someone is currently earning the minimum basic salary of Rs 18,000 and the DA for January 2025 goes up by 3%, their salary will jump by Rs 540.
With the current DA at 53%, their total salary (minimum basic pay + DA) amounts to Rs 27,540. But if the DA increases to 56%, they’ll see their pay rise to Rs 28,080.
If the DA gets a 4% bump, reaching 57%, the minimum basic salary will go up by Rs 720, bringing it to Rs 28,260 each month.
For Pensioners
For those with a minimum basic pension of Rs 9,000, a 3% increase in DA for January 2025 will add Rs 270 to their pension.
With the current DA at 53%, their total pension (minimum basic pay + DA) is Rs 13,770. If the DA rises to 56%, they’ll receive Rs 14,040.
If the DA increases by 4%, hitting 57%, the minimum basic pension will go up by Rs 360, making it Rs 14,130 monthly.