Big update for central government employees. Central government workers and pensioners are on the edge of their seats, waiting for news about a potential increase in their dearness allowance (DA). Various media outlets suggest that the government might approve a 2% hike soon, possibly by the end of this month. If this happens, the DA could rise from 53% to 55%. Reports indicate that Prime Minister Narendra Modi may finalize this decision during a cabinet meeting scheduled for an upcoming Wednesday.
Here’s the scoop: The dearness allowance is adjusted twice a year, in January and July, based on inflation rates, which means it boosts the salaries of central government employees. While government employees receive DA, pensioners benefit from Dearness Relief.
So, how much more will you earn? If the 2% DA increase goes through, an entry-level employee with a basic salary of Rs 18,000 per month will see their salary rise by Rs 360 starting January 1, 2025. Currently, with a basic salary of Rs 18,000, they receive Rs 9,540 (53%) as DA. With the 2% hike, their DA would jump to Rs 9,900, adding that Rs 360 to their paycheck. If the increase were 3%, it would boost their DA to Rs 10,080, giving them an extra Rs 540.
As for the last DA hike, it took effect on July 1, 2024, with a 3% increase that raised the DA from 50% to 53% of the basic pay. Pensioners received a similar boost in their dearness relief. The Modi government has also set up the 8th Pay Commission to discuss potential increases in the basic pay for government employees, which is expected to take effect in January 2026.