Good news for government employees! Salaries and allowances may increase soon. The government is expected to announce a hike in Dearness Allowance (DA) and Dearness Relief (DR) soon. This decision is likely to benefit more than 1 crore employees and pensioners and may be announced as early as this month. In this article, we will share all the details about this update.
How is the DA hike determined?
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The percentage increase in DA is based on the AICPI-IW index, which tracks inflation. The government reviews this index to decide the necessary DA hike. This increase helps employees keep up with the rising cost of living.
How much will the salary increase be?
Currently, DA is set at 53% and is likely to rise by 3% to 4%. If this happens, the total DA could reach 56%. This means employees’ salaries could increase by around Rs 540 to Rs 720 per month.
Also Read –DA Hike Update: Central Government Employees to Get 2% Increase!
When will the DA increase be announced?
The central government usually announces the DA hike before the Holi festival, and this year, it is expected to happen around the same time. Last year, the DA hike was announced around Holi, and the same timeline is expected this year. If the increase is approved, it will likely fall under the Seventh Pay Commission, but the formal announcement will confirm this.
Union Cabinet is likely to announce a hike in #dearnessallowance and dearness relief this week
Read more: https://t.co/qav8eNEXPg pic.twitter.com/yfk0lmHVpw
— NDTV Profit (@NDTVProfitIndia) March 10, 2025
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What is the future of DA and salary?
Along with the DA hike, discussions are ongoing regarding the Eighth Pay Commission. Preparations for the formation of this commission are underway, and its recommendations for future pay hikes are expected to be submitted early next year. Decisions on pay and allowances under the Eighth Pay Commission will be made in the future.