The central government gave great news to central employees just before the start of the new financial year. On Friday, the Union Cabinet approved a 2% increase in the dearness allowance, raising it to 55%. Earlier, in October 2024, just before Diwali, the government had approved a 3% hike from 50% to 53%. This decision will increase the salaries of central employees and the pensions of retirees.
When Will the Arrears Be Paid?
The recent dearness allowance (DA) hike will be effective from January 1, 2025. This means employees and pensioners will receive arrears for previous months. Many are wondering when the government will pay these arrears. The central government will provide arrears for January, February, and March, along with the April salary, to lakhs of employees and pensioners.
How Much Arrears Will Be Given?
Government employees with a minimum basic salary of ₹18,000 per month will see an increase of ₹360 per month. So, they will receive ₹1,080 as arrears for three months.
For pensioners with a basic pension of ₹9,000, the increase is ₹180 per month, making their total arrears ₹540 for three months.
DA Increases Twice a Year
The government revises the DA twice a year based on inflation and the price index to maintain employees’ real income value.
- First DA hike: Effective from January 1, usually announced in March.
- Second DA hike: Effective from July 1, announced in October.
Will DA Be Merged After the 8th Pay Commission?
Prime Minister Narendra Modi approved the 8th Pay Commission for central employees in January, but the Pay Commission has not been formed yet. The three-member committee’s names have been disclosed, and the commission is expected to be formed by April-end. Once the 8th Pay Commission is implemented, DA will be merged into the basic salary, and employees’ DA will reset to zero.