DA Hike: The central government finally gave good news to central employees and pensioners on March 28. Yes, the dearness allowance (DA) of government employees and DR for pensioners has been increased by 2 percent. This decision was taken in the cabinet meeting chaired by PM Narendra Modi. Let us tell you that this decision to increase DA will be implemented from January 1, 2025, which will benefit more than 1 crore employees and pensioners.

When will the employees get DA arrears

This time the announcement of DA hike has been made a little late. Usually the government makes this announcement before Holi or Diwali, but this time the hike for January-June was announced at the end of March. This time the DA has increased by only 2%, which is the lowest in the last 7 years. Usually the government has been increasing it by 3% or 4%, but this time it was limited to only 2%. Earlier, the government had increased DA from 50% to 53% for July-December 2024. Now it will become 55%.

How much will be the increase in salary and pension?

Under the 7th Pay Commission, the minimum basic salary of a central government employee is Rs 18,000. This 2% increase in DA will be Rs 360 more per month, which means the arrears for three months (January to March 2025) will be Rs 1,080. For pensioners drawing minimum basic wage of Rs 9,000, the arrears will be Rs 540, which will be paid along with the pension of April 2025.

8th Pay Commission announcement

This is the first increase in DA after the announcement of the 8th Pay Commission. The government had announced the formation of the 8th Pay Commission on January 16, 2025, whose recommendations will be implemented from January 1, 2026. It usually takes 1 year for the Pay Commission to prepare its recommendations, so the DA hike for July-December 2025 to be announced around Diwali this year will be the last under the 7th Pay Commission.

Central government employees

The government will announce the DA hike for July-December 2025 in October-November 2025. The DA will be added to the basic pay after the 8th Pay Commission recommendations are implemented and then it will start from zero.

For now, the increased DA and the three-month arrears to be received in April will provide relief to government employees and pensioners. Now all eyes are on the 8th Pay Commission, as soon the government may announce the names of the members of the pay committee. The committee is expected to submit its report in 15 to 18 months. Based on the recommendations of the committee, the government will decide on salary and pension hikes for central government employees and retirees.