Expected DA Increase: Central Government Employees Might Get an Hike of 2% Just Before Holi
Expected DA Increase: Central Government Employees Might Get an Hike of 2% Just Before Holi
An increase of 2% in Dearness Allowances (DA) for central government employees and pensioners is expected to be announced just before the Holi festival which is celebrated on March 14, 2025. Currently, the DA is 53% of basic pay and with the increase,e it will be 55%. This is with the allowance for almost 12 million workers all paid under the 7 Pay Commission.
Previous Increase in DA
The previous increase in Dearness Allowance occurred in October 2024 when the government allowed the extension of the 3% increase from 50% to 53% of basic pay effective from July 1, 2024. Earlier in March 2024 the DA was increased by 4%, bringing the current DA to 50%.
How DA Is Calculated
Government employees and pensioners do get Dearness Allowance as a cost of living adjustment or inflation combatting allowance. Such allowances are calculated as a certain percentage of the basic pay every month based on AICPI (All India Consumer Price Index). These allowances are reviewed and revised every quarter ,in January and July, by government, based on inflation developments.
Effect on Monthly Salary
DA directly and immediately benefits the central government employees, which subsequently raises their salaries each month. The following can be computed in terms of actual cash regarding an increase proposed at 2%.
Basic Pay of Rs 30,000: Presently DA at 53%, the DA component calculated comes to Rs 15,900. Thereafter a 2% increase will mean 55% of the DA calculated at Rs 16,500 generating an additional cash flow of Rs 600 per month.
Basic Pay- Rs 45,000: At present D.A. amount is Rs 23,850. With the proposed increase, it will become 24,750, which means an increase in cash flow by Rs 900 per month.
Basic Pay- Rs 60,000: Presently DA is Rs 31,800. After this increase, it would become Rs 33,000, providing a cash flow increase of Rs 1,200 per month.
Official Announcement Expected Soon
While the air foams with a DA hike, the matter would ultimately rest into the reaches of the Union Cabinet under the Modi government. The last cabinet meeting on March 5, 2025, did not deliberate on the DA hike.
An announcement in this regard is expected just before Holi, as has been the longstanding practice for the government to announce such welfare measures for employees around major festivals.
Follow Up
If implemented the 2% increment will give much needed relief to government staff and Pensioners during the Holi period. More so it is set to enhance the purchasing power of employees since inflation has already hit hard on daily expenditures.
Hence, the employees are requested to wait for the official announcement of the imminent government budget and its direct effect on employees’ payslips.
