Central employees and pensioners might be in for some good news ahead of Holi 2025. With Holi set for March 14, there’s a chance the government will announce a hike in the dearness allowance (DA) for central employees just in time for the festival. This increase could significantly boost both employee salaries and pension amounts, providing some relief from rising inflation.
When can we expect the DA hike announcement?
Under the 7th Pay Commission, the Dearness Allowance (DA) is adjusted twice a year. The first adjustment kicks in on January 1, and the second on July 1. So, the first increase for 2025 has already taken effect in January, and the official announcement could come in March 2025. However, the government hasn’t confirmed any DA increase yet.
How much of a salary bump are we looking at?
Employee organizations suggest that the DA for central employees and pensioners could rise by 2 to 3 percent this time around. This means employees could see their salaries increase by anywhere from Rs 360 to Rs 540.
For instance, if a government employee has a basic salary of Rs 18,000, their current DA at 53 percent would be Rs 9,540. If the DA goes up by 2 percent, their new DA would be Rs 9,900, giving them an extra Rs 360. If it increases by 3 percent, the DA would rise to Rs 10,080, resulting in an additional Rs 540.
Pensioners will also see benefits from this increase. More than 1 crore government employees and pensioners are expected to gain from this adjustment. While the DA applies to employees, pensioners will receive what’s known as Dearness Relief (DR).
DA went up by 4 percent in March 2024
Just to give you some context, last year in October 2023, the government raised DA by 3%, bumping it from 50% to 53%. Then, in March 2024, they added another 4%, bringing it back down to 50%.