Big DA hike coming? New govt notification hints at more than 4% increase

The central government might give a big gift to government employees before Holi. The government may increase Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners before Holi next week.

Amidst the Holi atmosphere, the only question on the minds of central government employees is: when will DA increase? Everyone has already started the countdown regarding this.

It is known that if this announcement is made, 1.2 crore central government employees and pensioners will benefit. But the question arises, how much will DA, DR increase?

The government increases dearness allowance twice a year, in January and July, for central employees and pensioners. If dearness allowance is increased before Holi, it will be effective from January.

It has also often been seen that dearness allowance and dearness relief are increased around Holi in March. So that employees can get relief before the festival.

On the other hand, the announcement of rent increase in July is usually made around Diwali in October or November every year.

Notably, the Cabinet did not discuss increasing dearness allowance (DA) for central government employees at the meeting held in New Delhi on March 5, 2025. The last DA increase was made in July 2024, when it increased from 50% to 53%.

On March 7, 2024, the Cabinet increased DA from the previous rate of 46% to 50% of basic pay. This announcement was made a few days before Holi, on March 25, 2024.

In January 2025, the Center announced the introduction of the Eighth Pay Commission. It is expected to be implemented by next year.

After the announcement of the formation of the Eighth Pay Commission, a huge increase in the salaries and pensions of employees and pensioners is expected.