Central government employees and pensioners are eagerly waiting for the announcement of a Dearness Allowance (DA) hike. With Holi approaching, many are hopeful that the government will increase the DA before the festival. This decision will benefit around 1.2 crore people. But the main question remains: How much will DA increase? Will the Dearness Relief (DR) also rise at the same rate?

Meanwhile, in January 2025, the central government announced the formation of the Eighth Pay Commission, which is expected to take effect next year. This could bring a significant increase in salaries and pensions for both employees and pensioners. There are also discussions about replacing old allowances with new ones, which may provide more benefits to employees and pensioners.

How Much Could DA Increase?

Based on the All India Consumer Price Index (AICPI-IW) data for December 2024, DA is expected to increase by around 2%. However, the final decision will depend on the approval of the Union Cabinet, which the Prime Minister heads. Once the increase is approved, a formal announcement will be made.

When Will the DA Increase?

The government increases the DA twice yearly – once in January and once in July. If DA is increased before Holi, it will be effective from January. The government often announces the DA hike around Holi in March to provide additional support to employees before the festival. The DA increase in July is usually announced around Diwali, in October or November.

Previous DA Increases Report

The last DA increase took place in July 2024, when it was raised from 50% to 53% of the basic pay. Earlier, on March 7, 2024, the cabinet increased the DA from 46% to 50%. However, it is reported that no DA hike was discussed in the recent Cabinet meeting held on March 5, 2025.

What Will the DA Increase Mean?

If the DA hike is announced before Holi, it will provide much-needed relief to central government employees and pensioners. Additionally, with the implementation of the 8th Pay Commission, employees and pensioners can expect even more benefits in the future.