DA Update –There is a big news for central government employees. According to a new update, about 1.25 crore employees and pensioners will be disappointed after reading this news. Recently, the government had announced an increase of 2% in Dearness Allowance (DA) and Dearness Relief (DR), which increased it to 55%.
This increase in DA was the lowest in the last 78 months (about six and a half years). But now, due to reduction in inflation in the first three months of 2025, the next DA hike may be less than 2% or zero. This news will disappoint those employees and pensioners who were expecting a good DA hike for July-December 2025. This will be the last DA hike of the 7th Pay Commission, as the 10-year term of the Pay Commission is ending on 31 December 2025.
The formation of the Eighth Pay Commission was approved by the government recently. The new Pay Commission will make recommendations related to the salary hike of central employees. Now lets find out what is DA? Dearness Allowance is a special allowance given to central and state government employees and pensioners to reduce the impact of rising inflation.
This allowance is revised twice a year, first in January and second in July. The first hike is usually announced in the month of March and the second hike in the month of October/November. DA is calculated on the basis of All India Consumer Price Index (AICPI-IW). This index helps in maintaining the real income of employees.