Central government employees and pensioners may get a big gift before Holi. The government may soon announce an increase in Dearness Allowance (DA) and Dearness Relief (DR), various media reports suggest. The DA hike will benefit over 1.2 crore central government employees and pensioners.
Why is the announcement made around Holi?
The central government reviews the dearness allowance twice yearly — first in January and second in July. The DA hike, usually decided in January, is announced around Holi in March, so that employees can get relief before the festival. The July hike is announced around Diwali every year in October or November.
How is DA decided?
The rate of dearness allowance is decided on the basis of the All India Consumer Price Index for Industrial Workers (AICPI-IW) released by the Labor Bureau, Shimla. The government decides on DA hike by analyzing the AICPI-IW data of the last six months.
According to the AICPI-IW data of December 2024, this time a 2% increase in dearness allowance is expected. However, the final decision will be taken after the approval of the Union Cabinet led by the Prime Minister.
Also read: 8th Pay Commission: Govt employees’ basic salary may not be doubled as expected – Know why!
How much was DA increased last time?
In March 2024, the central government gave a big gift to its employees before Holi by increasing DA by 4% to 50%. After this, it was again increased by 3% in October 2024 and the DA rate became 53%.
What will be the benefit to government employees?
If there is a 2% increase in DA this time, then the salary and pension of government employees and pensioners will increase. However, due to the basic salary of everyone being different, the benefit to each employee will also be different.
Central govt employees’ DA to be reset in January 2026?
After the government in January this year announced the 8th Pay Commission, which is expected to be implemented from January 2026, the big question on everyone’s mind is whether the DA would be merged into the basic pay and reset to zero next year. But keeping in view the current pace of the 8th Pay Commission process, it is likely that the proposed pay panel might come with its recommendations by the end of the ongoing financial year and then those get implemented only in the next fiscal year.
» Read More
