The central government is gearing up to surprise its employees with some good news before Holi. Reports suggest that an announcement regarding an increase in Dearness Allowance (DA) might be on the horizon, although there hasn’t been any official word from the government yet. Earlier, there were speculations about a potential 3 percent DA hike, but recent updates hint that employees might not get the boost they were hoping for.
An announcement could come before Holi
Holi falls on March 14 this year, and there’s a belief that the Modi government might roll out a significant gift for government employees by revealing the DA hike before that date. Additionally, an increase in Dearness Relief (DR) is also anticipated, which would mean a rise in pensions for retirees as well.
DA adjustments happen twice a year
As per the 7th Pay Commission guidelines, the dearness allowance is adjusted biannually. The first increase kicks in on January 1 and is typically announced in March, while the second one takes effect on July 1 and is revealed in September. This month, an announcement regarding the DA hike for January 2025 is expected.
8th Pay Commission
Central employees are also eagerly awaiting the recommendations from the Eighth Pay Commission. Earlier this year, Prime Minister Narendra Modi approved the establishment of the Eighth Pay Commission to reassess the salaries of central employees and the allowances for pensioners. This move is set to benefit around 5 million central government employees and about 6.5 million pensioners. For context, the Seventh Pay Commission was established in 2014, with its recommendations taking effect from January 1, 2016, and it will conclude its term in 2026.