Dearness Allowance

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.

The minimum wage is determined based on both skill levels—unskilled, semi-skilled, skilled, and highly skilled—and geographical area, divided into three categories: Area A, B, and C. This structure ensures that wage rates are tailored to local economic conditions and the skill requirements of different job roles.

This adjustment in DA also triggers corresponding increases in other components like house rent allowance (HRA), daily allowance, and gratuity ceiling, as per the recommendations of the 7th Pay Commission.

As a result of this decision, central government employees can expect to receive enhanced salaries from the month of November, along with arrears for the period spanning from July to October.

The 7th Pay Commission increased the DA for central government employees to 34 per cent in January, up from 31 per cent previously.

The finance ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval, says report. The DA hike will be effective from January 1, 2023. Currently, over one crore central government employees and pensioners are getting 38 per cent dearness allowance.