DA DR Hike 2025: This year, central government workers and retirees might receive a Big Holi gift. This week, right before the March 14 festival, the Center is probably going to make an announcement regarding an increase in Dearness Allowance (DA) and Dearness Relief (DR). One and a half crore central government employees and pensioners will benefit from this move if it is approved.
The government updates DA and DR twice a year, in January and July, and this announcement, if it is made, will carry on the tradition. The updated DA and DR rates will take effect in January 2025 if the government approves the increase. In order to give workers festive relief during Holi, the government has a long history of raising allowances.
DA DR Hike 2025 Announcement will be made before Holi
Good news for central employees.They might announce an increase in their dearness allowance just before Holi. It can be approved by the Cabinet. There will be a total increase of 3 percent in Dearness Allowance (DA Hike). Dearness Allowance will be increased to 56 percent. From July 2024, dearness allowance will be available at 53 percent. In actuality, the AICPI index figure stayed at 143.7 points until December 2024, bringing the DA’s overall score to 55.99 percent. Employees of the central government will receive a 56 percent dearness allowance in this manner.
The dearness allowance for central employees was not discussed during the March 5, 2025, cabinet meeting. It is now anticipated that by March 12, the dearness allowance (7th CPC DA Hike Update) may be increased. Over one crore employees will directly benefit if the government announces an increase in the dearness allowance for central employees.
DA may increase by 2%
Rupak Sarkar, President of Confederation of Central Government Employees and Workers, said, “The salary increase is expected to be announced in the next cabinet meeting. According to him, there could be a 2% increase in DA. The increase is likely to be less this year compared to last year. DA was increased by 3 percent in October and by 4 percent in March. Last year in October, with a 3 percent increase, DA increased to 53 percent of the basic pay. If DA is increased by 2 percent then it will become 55 percent of the basic pay.
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How much will the salary increase be?
Employee salaries will rise in tandem with the dearness allowance increase. The basic salary of Rs 18,000 will rise by Rs 360 per month if DA increases by 2%. Employees’ dearness allowance (7th CPC DA Hike Update) will rise from Rs 9,540 to Rs 9,900 per month as a result. In contrast, DA would have increased by Rs 540 to Rs 10,080 per month if this increase had been 3 percent. A 4 percent increase in DA, however, appears to be unattainable at this time.
What are the advantages of raising DA?
DA makes up for inflation, which provides relief from it.
Increased government employee salaries result in more money available to the workers.
The DA Hike will go into effect on January 1, 2025
It will go into effect on January 1, 2025, following the release of the dearness allowance figures. The arrears from the previous two months are also probably going to be included in the March salary because it is announced in March. Prior to the nationwide celebration of Holi on March 14, central employees will receive a Holi gift in the form of an increase in their dearness allowance. As of July 1, 2024, dearness allowance is being paid at a rate of 53 percent; this will rise to 56 percent.
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The government also revealed plans for the 8th Pay Commission in January 2025, which is anticipated to be put into effect the following year. Employees and retirees have been anticipating a significant pay and pension reform ever since.
According to reports, after the 8th Pay Commission is implemented, current benefits might be eliminated and replaced with new ones, which could result in large financial gains for workers.
This time, a 2 percent increase in DA is anticipated, according to the AICPI-IW data for December 2024. The Union Cabinet, which is headed by the Prime Minister, will ultimately make the decision, though.
