DA Hike: As the Holi festival draws near, a sense of joy is likely to emerge among central government employees. The government is once again poised to extend a gesture of goodwill to its over 1.2 crore employees and pensioners.
Here’s the latest update
Reports suggest that an announcement regarding an increase in Dearness Allowance (DA) and Dearness Relief (DR) may be forthcoming, which would enhance the monthly earnings of employees and add vibrancy to their Holi celebrations. This adjustment is expected to not only alleviate financial pressures for employees but also bring joy to their families. Traditionally, the central government has implemented a DA increase twice annually.
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The first adjustment, effective from January, is typically announced in March, coinciding with the Holi festivities. The second adjustment takes effect in July and is usually revealed in October or November, prior to Diwali. These increases are intended to provide financial assistance to employees and pensioners in response to inflationary trends.
Last year, on March 4, 2024, the Cabinet sanctioned a 4 percent increase in DA, raising it from 46% to 50%. Subsequently, in October, a further 3 percent increase brought the DA to 53%. Currently, the DR for pensioners also stands at 53%. Should the upcoming increase be 2 percent, the DA would rise from 53% to 55%. Although no decision was reached during the recent cabinet meeting in Delhi on March 5, 2025, it is anticipated that the government may deliver positive news to employees prior to Holi. This increase will have a direct impact on employees’ salaries, resulting in additional income.
Probable amount of salary increase
The benefit derived from the DA increase is calculated based on the employee’s basic salary. For instance, if an employee’s basic salary is Rs 18,000, a 2 percent increase would result in a monthly salary boost of Rs 360. Conversely, for a basic salary of Rs 20,000, the monthly income would rise by Rs 400. While these amounts may appear modest, they will provide significant relief to employees in the current inflationary climate.