Another big news for government employees. Even though the 8th Pay Commission is set to roll out next year, central government employees are still in line for at least two DA increases under the current 7th Pay Commission—one in March and another in October. The next DA hike, which will kick in on January 1, 2025, is likely to be revealed in March, around the time of Holi. However, there hasn’t been any official word on this yet.

 

The DA adjustments happen twice a year (starting in January and July) and are designed to boost the salaries of central government employees based on inflation rates.

 

In the last DA increase in October 2024, employees saw a 3 percent rise effective from July 1, 2024, pushing the DA up from 50 percent to 53 percent of their basic pay. Pensioners also benefited from the same increase in dearness relief.

 

7th Pay Commission: What’s the Salary Boost?

Employee unions are hopeful that the government will announce a 3-4 percent DA hike in March 2025, coinciding with Holi.

 

For entry-level central government employees earning around Rs 18,000 a month, this DA hike could mean an increase of about Rs 540-720 per month starting January 1, 2025.

 

If someone earns Rs 30,000 a month and has a basic pay of Rs 18,000, they currently receive Rs 9,000 as dearness allowance, which is 50% of their basic pay. After a projected 3% increase, their monthly pay will go up to Rs 9,540, which is an extra Rs 540. If the dearness allowance increases by 4%, the new amount will be Rs 9,720 each month.

 

So, for a monthly salary of about Rs 30,000 with a basic pay of Rs 18,000, the employee’s salary could increase by anywhere from Rs 540 to Rs 720.

 

Dearness allowance is provided to government employees, while dearness relief is for pensioners. Both DA and DR are adjusted twice a year, in January and July. Right now, more than one crore central government employees and pensioners are receiving a 50% dearness allowance.

 

In the last adjustment in March 2024, the central government raised the dearness allowance by 4%, bringing it to 50% of the basic pay. They also increased the dearness relief (DR) by 4%.