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Employees will see the increased DA reflected in their April salaries, which will also include arrears for January to March 2025, as the decision was finalised later than usual.
In a major relief for central government employees and pensioners, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday (March 28) approved a 2% hike in Dearness Allowance (DA). The announcement was made by Union Minister Ashwini Vaishnaw. With this revision, DA for central government employees will now rise to 55% of the basic pay, up from the current 53%.
The increase will be applicable retrospectively from January 1, 2025, benefiting over one crore employees and pensioners across the country. Employees will see the increased DA reflected in their April salaries, which will also include arrears for January to March 2025, as the decision was finalised later than usual.
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The 2% DA hike will result in a salary increase for employees based on their basic pay. For example:
An entry-level government employee with a basic salary of Rs 18,000 per month will see an increase of Rs 360 per month.
An employee earning Rs 30,000 per month, with a basic pay of Rs 18,000, currently receives Rs 9,540 as DA (53% of basic pay). With the 2% hike, this amount will rise to Rs 9,900, marking an increase of Rs 360.
Had the government approved a 3% DA hike, the increase would have been Rs 540, raising the total DA to Rs 10,080 per month.
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The last DA hike was announced in October 2024, when the government increased DA by 3%, effective from July 1, 2024. This raised the DA from 50% to 53% of the basic pay. Central government pensioners also received a corresponding increase in Dearness Relief (DR).
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