The decision to increase Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners has not yet been made. The decision has already been delayed by around a week, since the big announcement was expected before the Holi festival. Then reports suggested that the Union Cabinet, after its meeting on March 19, might announce the good news for employees. But that too didn’t happen.
Now, according to sources, the government can seal it at any time, and the decision took time due to government procedures and financial approvals.
What is DA, and who gets it?
This allowance, which is directly linked to the basic pay of a government employee, is hiked twice a year. The government revises the DA to reduce the impact of inflation on employees and pensioners.
Also read: Central govt employees to get 3 DA installments frozen during pandemic?
It applies to current central government employees and pensioners as a cost-of-living adjustment, while private sector employees are generally not entitled to it. Employees working in public sector undertakings (PSUs) also receive a dearness allowance.
Usually, the government announces the DA hike for January-June before Holi and for July-December before Diwali. But this time, the hike for the January-June 2025 cycle could not be announced before Holi. It is believed that a 2% hike is possible, which will increase the DA from 53% to 55%. The 2% hike is expected in DA based on the AICPI (All-India Consumer Price Index Data) for July-December 2024.
When will the DA hike decision come now?
Since this decision has already been deferred, the government can approve it in the next cabinet meeting, which may take place next week. Once approved, the increased DA will be effective from January 2025, and employees may also get the arrears of January, February, and March when they receive the April month’s salary.
How much will employees and pensioners benefit?
If the basic salary is Rs 18,000, then a 2% increase will result in an increase of Rs 360 per month, that is, an additional benefit of Rs 4,320 will be available in a year.
Similarly, if the basic pension is Rs 9,000, then there will be an increase of Rs 180 per month, which will give an annual benefit of Rs 2,160.
» Read More
