The central government has given great news to its employees and pensioners before the start of the new financial year. The Union Cabinet has approved a 2% increase in the Dearness Allowance (DA), bringing it up to 55%. This hike will increase the salaries of government employees and pensions of retirees. In October 2024, just before Diwali, the government had already approved a 3% hike, raising DA from 50% to 53%.
When Will Employees Receive DA Arrears?
The 2% DA hike is effective from January 1, 2025. This means that employees and pensioners will receive arrears for January, February, and March. Many people are wondering when they will get the arrears. The central government has confirmed that the arrears amount will be paid along with the April salary.
How Much Arrears Will Be Given?
The exact arrears amount depends on the employee’s basic salary or pension. Here’s a breakdown:
For government employees with a basic salary of ₹18,000 per month:
- DA increase: ₹360 per month
- Total arrears for three months: ₹1,080
For pensioners with a basic pension of ₹9,000 per month:
- DA increase: ₹180 per month
- Total arrears for three months: ₹540
DA is Revised Twice a Year
The Dearness Allowance (DA) is revised two times a year to adjust salaries according to inflation. The government makes these changes based on the inflation rate and price index to help employees maintain their purchasing power.
- First DA hike: Effective from January 1, usually announced in March.
- Second DA hike: Effective from July 1, usually announced in October.
Will DA Be Merged After the 8th Pay Commission?
The 8th Pay Commission has been approved by Prime Minister Narendra Modi in January 2025, but it has not yet been officially formed. The names of the three-member committee have been disclosed, and the commission is expected to be formed by April-end.
Once the 8th Pay Commission is implemented, the Dearness Allowance will be merged into the basic salary. After this merger, the DA will reset to zero, and future salary increments will follow a new structure.
Conclusion
The 2% increase in DA is a positive step for central government employees and pensioners. It will provide better financial support and help them cope with rising expenses. With the 8th Pay Commission on the way, employees can expect further salary improvements in the near future. Stay updated for more government announcements regarding salary structure changes.
Disclaimer: The information provided in this article is for general informational purposes only. While we strive for accuracy, we do not guarantee the completeness, reliability, or timeliness of the content. Readers are advised to verify details from official sources before making any decisions.