DA Hike: With this revision, DA will rise from 53 per cent to 55 per cent, providing a salary boost for employees. Union Minister Ashwini Vaishnaw said that the DA hike will be effective from January 1, 2025.
The Union Cabinet on Friday increased the Dearness Allowance (DA) by 2 per cent for central government employees. The move will benefit over one crore employees ahead of the much-awaited 8th Pay Commission. With this revision, DA will rise from 53 per cent to 55 per cent, providing a salary boost for employees.
This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners.
Union Minister Ashwini Vaishnaw said that the DA hike will be effective from January 1, 2025.
“The Union Cabinet chaired by Prime Minister Narendra Modi approved to release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53 per cent of the Basic Pay/Pension, to compensate against price rise,” the government said in a release.
The last increase was on July 1, 2024. Earlier to this, the government hiked DA/DR by 4 percentage points to 50 per cent in March, 2025. This was effective from January 1, 2024.
This increase is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.
The combined impact on the exchequer on account of the increase in both Dearness Allowance and Dearness Relief would be Rs. 6614.04 crore per annum.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
What is DA?
Dearness Allowance (DA) is a financial benefit that the government employees to offset inflation and ensure their salaries remain in line with rising living costs.
While basic salaries are determined by a pay commission every 10 years, DA ensures periodic adjustments to help employees manage inflation.
DA and DR are paid to adjust the cost of living and protect employees and pensions from inflation.
