The central government has given a big relief to its lakhs of employees and pensioners. Under the 7th Pay Commission, a 2% increase in Dearness Allowance (DA Hike) has been approved, which will increase the monthly income of government employees and pensioners. This new DA will be applicable from January 1, 2025, that is, employees will also get its arrears. So let’s know how it will have a direct impact on your salary and how much more money will come into your pocket! This decision has brought a big relief to the employees and pensioners struggling with inflation.
About 48.66 lakh employees and 66.55 lakh pensioners will get the benefit
The government has increased the DA from the current 53% to 55%. This means that government employees (Central Government Employees) will now get a 55% dearness allowance of their basic salary. This decision was taken in the meeting of the Union Cabinet, which will directly benefit about 48.66 lakh employees and 66.55 lakh pensioners. The increase in dearness allowance will also increase the expenditure of the government. The new DA (Dearness Allowance) and DR (Dearness Relief) will put an additional burden of ₹ 6,614.04 crore annually on the government treasury.
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How much will the salary increase after the increase in DA
Dearness allowance is given on the basic salary, so the increase in the salary of each employee will be different. Let us understand this with an example.
If the basic salary of an employee is ₹ 20,000, then earlier they used to get 53% DA (₹ 10,600). Now DA has increased to 55%, that is, now they will get ₹ 11,000. This means an increase of ₹ 400 every month. Similarly, if the basic salary of an employee is ₹ 50,000, earlier they used to get ₹ 26,500 DA, which will now increase to ₹ 27,500. That is, the salary will increase by ₹ 1,000.
How many times DA increases every year
The dearness allowance of government employees is increased twice a year. The first time in January and the second time in July. Earlier in July 2024, DA was increased by 3%, due to which it increased from 50% to 53%. The government reviews DA every six months based on inflation figures and increases it to provide relief to the employees.
When will the extra money come into your pocket
The government has taken this decision in March 2025, but it will be effective from January 1, 2025. This means that the employees will also get the arrears of three months of January, February and March by adding them to their salary. This arrears is likely to come with the salary of April, which will give a good amount of extra money to the employees.
When will the 8th Pay Commission be implemented
The government has recently approved the formation of the 8th Pay Commission. The recommendations of this commission are likely to be implemented in 2026, after which a major change can be seen in the salaries and allowances of government employees. Employees hope that the recommendations of the 8th Pay Commission will further strengthen their financial position.
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