DA Hike 2025: Government gives a big boost to millions of employees and pensioners
Across the country, from the Centre to the States, a common gift of enhanced Dearness Allowance has excited employees.
The Central Government has increased dearness allowance (DA) and dearness relief (DR) for its employees and pensioners by 2% with effect from January 1, 2025. This is another momentous decision made by the Central Government to give direct financial aid to millions of government staff and retired personnel.
The issue that has made this announcement more significant is that it is following the Center’s path and resulting in similar announcements of a 2% hike regarding state employees and pensioners in Rajasthan, Uttar Pradesh, Assam and Odisha. Consequently about 45 lakh additional individuals will now have the new allowance rates to benefit from within the four states.
To make this announcement even more attractive, the employees will be eligible for three months’ pending differences as arrears applicable for January, February and March 2025, with the increased sums showing in the April salary paid out May.
Rajasthan Leads by Example: 12.5 Lakh Individuals Gain
Rajasthan was on the forefront with regard to information and actions in the aftermath of the Central announcement. The Government of Bhajanlal approved an increase of 2 percent in dearness allowance (DA) for the benefit of around 8 lakh employees and around 4.4 lakh pensioners with effect from April 1.
The increase is to be in line with the 7th Pay Commission guidelines, making the DA for Rajasthan government employees at par with the central one of 55%.
As a part of this arrangement, the increased amount would be paid in cash from April but all the corresponding arrears for January-March will be credited to the accounts of GPF of the eligible employees. Employees under Panchayat Samitis and Zila Parishads are also under this increase.
Assam Extends DA Boost for Over 7.3 Lakh Government Workers and Retirees
Not to be outdone, Assam’s chief minister Himanta Biswa Sarma would raise, by January 2025 the DA/DR from 53% to 55%. More than 7.38 lakh employees and pensioners of the state will get its benefits.
The pending three months’ arrears will be paid during April and May by the state government. This is a relief for many at this high cost of living and economic uncertainty.
Uttar Pradesh Gives a Hike for 16 Lakh State Workers
In Uttar Pradesh, the administration of Chief Minister Yogi Adityanath followed this trend adding the 2% DA increase to a large segment of state workforce. There are about 16 lakh employees from the departments of a state government, aided educational institutions, urban local bodies and those under UGC pay scales benefiting from this increase.
The enhanced amount is going to be paid along with the salary for April, and the dues for the preceding three months are going to be paid concurrently . According to this increment, the State Government is going to add an extra Rs. 107 crore per month to its expenditure, while Rs 193 crore would go towards settling the
arrears. The GPF account of employees following the Old Pension Scheme (OPS) would stand to acquire 129 crores from the aforementioned provision.
What Will The Hike Mean For Monthly Paychecks
For employees, a 2% increment may not appear to be much, but it surely would have some tangible consequences. For example, an employee having minimum salary Rs 18,000 got allowance of Rs 9,900 recently, which increased from Rs 9,540 i.e. an increase of Rs 360 towards additional salary for one month. In the case of an employee with a basic salary of Rs 50,000, the DA would be Rs 26,500, getting incremented to Rs 27,500 this means additional Rs 1,000 in hand.
Although not massive, the increase would provide some sort of relief in these times of inflation and rising costs. Considering government employees and retirees, this is seen as something positive that promotes their morale as middle-of-the-year approaches.
In Closing
The DA hike in 2025 has been taken out in full view of the Centre and embraced by the states soon after, making it a nationwide initiative that is providing some fiscal consolation for millions. While these figures may be seen as pale on the paper, the real strength lies in the immediate help it puts into the hand of the households trying to survive amid ever-increasing costs.
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