DA hike: How much will central govt spend on 2% increase for employees?

The central government has increased the DA by 2% from January 2025. As a result, 4.5 million government employees and 6.8 million pensioners will benefit. The DA increase will raise salaries from a minimum of ₹180 to a maximum of ₹5000.

The central government's 2% DA will be effective from January 2025. Because the central government has increased the DA or dearness allowance by 2% for employees and pensioners.

As a result of this announcement, 4.5 million central government employees and 6.8 million pensioners benefit.

The central government's 2% DA will be effective from January 2025. Due to the 2% DA increase, the minimum increase will be ₹180, and the maximum will be ₹5000.

With a 2% DA increase, the maximum salary increase will be up to ₹12,000 per month. Currently, those with a basic salary of ₹18,000 will see a DA increase of ₹360.

This decision by the central government will cost ₹3,622 crore per year to provide the increased DA.

Providing DA to pensioners will cost ₹2,992 crore per year. The total annual cost of providing DA to central government employees and pensioners will be ₹6,614 crore.