DA Hike: The Union Cabinet on Friday approved a 2% increase in the dearness allowance (DA) of central employees. This big decision was taken in the cabinet meeting.
With this increase, the dearness allowance (DA) of central employees and dearness relief (DR) of pensioners will increase from 53% to 55%. This increase has been implemented under the 7th Pay Commission.
Last DA Hike Was in July 2024
The last time DA was hiked was in July 2024, when it was increased from 50% to 53%. Now, with an additional hike of 2%, employees will see a further increase in their basic pay. This hike will be effective from January 1, 2025, benefiting lakhs of employees and pensioners.
DA Hike Impact
If an employee’s basic salary is ₹50,000, they get ₹26,500 as dearness allowance (DA) at the current 53% rate. With the new 55% DA, they will get ₹27,500, increasing their salary by ₹1,000.
Similarly, employees with a basic salary of ₹1,00,000 currently get ₹53,000 DA at 53%. With the new 55% rate, this will increase to ₹55,000, leading to a ₹2,000 increase in monthly salary.
2 Months’ Arrears to Be Paid
The government has announced a hike in dearness allowance (DA) in March. As a result, employees will receive two months’ pending arrears along with their March salary. The DA for January, February, and March will be combined and credited to employees’ accounts.
Over 1 Crore Central Employees to Benefit from DA Hike
More than 1 crore central employees are going to benefit from the increase in dearness allowance (DA). For a long time, government employees have been demanding a 3% increase in DA. However, it was already being estimated that this increase would be limited to 2%.
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