The central government is anticipated to soon adjust the rates of dearness allowance (DA) and dearness relief (DR) for its employees and pensioners ahead of the Holi festival. A meeting of the Union Cabinet is scheduled for today, where a significant announcement regarding central government employees is expected.
4% hike in DA?
Media reports suggest that a four percent increase in dearness allowance (DA) may be approved for central government employees, effective from January 2025. If this increase is enacted, it would result in an additional monthly amount ranging from Rs 540 to Rs 720, depending on the employee’s salary.
DA to increase before Holi?
Historically, the government has frequently announced DA increases prior to Holi, and employees and pensioners are hopeful for a similar adjustment this year.
7th Pay Commission
According to the 7th Pay Commission, the DA for central government employees is revised biannually in January and July. The official announcement regarding the January revision typically occurs in March, while the July adjustment is usually revealed in September or October. It is important to note that the revised dearness allowance takes effect from January and July, regardless of the announcement date.
Government raised the DA by 4 percent in March 2024
In previous adjustments, the government raised the DA by 4 percent in March 2024 and by 3 percent in October 2024, bringing the total DA to 53 percent. The DA revision is determined by the All India Consumer Price Index (AICPI), which monitors inflation trends. While this allowance assists employees and pensioners in managing increasing living expenses, it is subject to full taxation.