NEW DELHI, Mar 28: The Union Cabinet headed by Prime Minister Narendra Modi, on Friday approved a 2 per cent Dearness Allowance (DA) hike for the central government employees and pensioners.
The announcement was made by Union Minister Ashwini Vaishnaw. The hike will be with retrospective effect from January 1, 2025, and will benefit more than one crore employees and pensioners.
The minister said the April salaries would carry the raised DA along with arrears for the previous three months (January-March 2025), as the announcement was delayed.
With this revision, DA will increase from 53% to 55%, providing a salary boost for government employees. The previous DA hike occurred in July 2024, when it was raised from 50% to 53%.
DA is a cost-of-living adjustment granted to government employees to help offset the impact of inflation. It ensures that salaries retain their purchasing power despite rising expenses. While basic salaries are determined by the Pay Commission every 10 years, DA is revised periodically to align with inflation trends.
The government increases DA twice a year. The announcement may be late, but the DA rate is calculated as per the All India Consumer Price Index (Industrial Workers) reading for January and December.
(Manas Dasgupta)
