2% DA Increase For Central Government Staff & Pensioners: What You Need To Know

New Delhi: The central government has approved a 2 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners, effective from January 1, 2025. This decision, taken during a cabinet meeting chaired by Prime Minister Narendra Modi on March 28, will benefit over 1 crore employees and pensioners.

When Will Employees Get DA Arrears?

Unlike previous announcements typically made before major festivals like Holi or Diwali, this DA increase was announced at the end of March. Employees can expect the enhanced DA to reflect in their April 2025 salaries. Additionally, arrears for January to March 2025 will be paid along with the April salary, covering a three-month period.

Lowest DA Increase in 7 Years

The 2 per cent DA hike is the smallest in the last seven years. Earlier increases were usually around 3-4 per cent. For instance, the DA was increased from 50 per cent to 53 per cent for July-December 2024, and with this hike, it will rise to 55 per cent.

Impact on Salary and Pension

For employees under the 7th Pay Commission with a minimum basic salary of ₹18,000, the DA hike means an additional Rs 360 per month. This translates to Rs 1,080 in arrears for the three-month period. Pensioners with a minimum basic pension of Rs 9,000 will receive Rs 540 as arrears, to be paid along with the April pension.

What’s Next After the 8th Pay Commission?

This DA hike is the first since the announcement of the 8th Pay Commission on January 16, 2025. Its recommendations will be implemented from January 1, 2026. The government is expected to announce the names of the pay commission committee members soon. The final report is anticipated within 15-18 months, influencing future salary and pension revisions.

The next DA hike for July-December 2025 will be announced around Diwali 2025, under the 7th Pay Commission. Post the 8th Pay Commission’s implementation, DA will be merged with the basic salary, starting from zero.

This DA hike and the pending arrears offer temporary relief, but all eyes are now on the 8th Pay Commission, which promises significant changes for central government employees and pensioners.