DA Hike 2025: Exciting news for employees and pensioners of the Uttarakhand government! Chief Minister Pushkar Singh Dhami has approved a significant increase in the Dearness Allowance (DA Hike 2025) for state employees and pensioners. The State Finance Department has issued a DA Hike 2025 order stating that the DA has been raised by 3 percent. This means that employees and pensioners will now receive a higher monthly allowance, with the DA increasing from 55 to 58 percent.
Furthermore, the government had previously announced a DA Hike 2025 for employees in the administrative departments of public undertakings and corporations. This decision showcases the government’s commitment to improving the financial well-being of its workforce.
DA Hike 2025: From 55% to 58%
The EPFO circular dated 6th May 2025 announced in this regard, saying, “Attention is drawn to the following orders issued by the Department of Expenditure/DoPT in the past, and it is requested that consequent upon the increase of Dearness Allowance by 3% to 58% w.e.f. 01.07.2025, the payments of the following allowances, wherever applicable, may be made at enhanced rates of 25% over the existing rates w.e.f. 01.07.2025.”
It’s important to note that this increase in DA applies not only to state government employees but also to regularized and full-time employees of aided educational and technical education institutes. The government’s dedication to supporting its employees is commendable, and this boost in benefits will undoubtedly have a positive impact on their lives.
Overall, this DA Hike 2025 announcement reflects the government’s commitment to the welfare of its employees and pensioners. By providing them with a higher Dearness Allowance, the Uttarakhand government is ensuring that their hard work and dedication are duly recognized and rewarded.
What is DA (Dearness Allowance), and what are the benefits of getting this?
The dearness allowance, which is provided to Central government employees and pensioners, is designed to ensure that their salaries can keep up with the inflationary trends. This financial assistance helps employees cope with the increasing prices of goods and services.
When the dearness allowance is increased, it has a direct impact on the salaries of Central government employees. This adjustment helps them manage their budget in light of the rising inflation. Additionally, the increase in dearness allowance also affects the Provident Fund (PF) and gratuity components of the employees’ salaries. These calculations are based on the employee’s basic salary and the dearness allowance. However, it is important to note that an increase in the dearness allowance may also lead to a larger tax liability for the employees. As the overall salary increases, the tax obligations may also rise accordingly.
Typically, the Dearness Allowance (DA Hike 2025) undergoes revision twice annually, specifically in January and July, taking into account the AICPI index’s half-yearly data. Notably, a substantial increase of 8% in DA was implemented in 2023. Presently, employees of the Central government are anticipating a raise of 4% or potentially higher in their Dearness Allowance.
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With a 3% increase in the Dearness Allowance (DA Hike 2025), the salary of central government employees will see a rise. This hike in DA will have a positive impact on not only central government employees but also central government pensioners and family pensioners who receive pensions from the central government.
For central government employees, an increase in DA directly affects their take-home salary. To illustrate, let’s consider a central government employee with a monthly basic salary of Rs 39,900. Previously, with a DA of 46%, the employee received Rs 18345 as dearness allowance. However, with the DA now raised to 50%, the employee’s DA will increase. Consequently, with this latest hike, the employee’s salary will be boosted by Rs 1,596 per month, effective from January 1, 2025.
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Similarly, central government pensioners receive dearness relief, which is akin to the DA applicable to central government employees. The dearness relief has also witnessed a 3% increase. As a result, the monthly pension of retired central government employees will also experience an upsurge. For instance, let’s consider a central government pensioner with a basic pension of Rs 40,100 per month. Previously, with a dearness relief of 46%, the pensioner received Rs 18,446. However, with the dearness relief now increased to 50%, the pensioner will receive Rs 20,446 every month. Consequently, the pension will rise by Rs 1,604 per month.
It is important to note that these changes will be implemented retrospectively from January 1, 2025, and will apply to both central government employees and pensioners.