7th Pay Commission: Central govt may announce an increase in Dearness Allowance (DA) and Dearness Relief (DR) next week

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7th Pay Commission: The central government is likely to announce an increase in dearness allowance (DA) and dearness relief (DR) next week. This decision of the government will benefit more than 1.2 crore government employees and pensioners.

According to media reports, the government may make a formal announcement before Holi. The government revises DA every year in January and July, although its official announcement is made after some time. Usually, the increase in January is announced before Holi, while the increase in July is made around Diwali. The government makes this allowance to maintain the purchasing power of employees from the impact of inflation.

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How much will the increase be this time?

According to the data of December 2024, the government may increase it by 3%, which will take DA and DR to 56%. However, the final decision will depend on the approval of the Union Cabinet headed by the Prime Minister.

A look at the previous DA hikes…

March 2024: The government increased DA from 46% to 50%. This announcement was made on March 7, 2024, which gave relief to the employees before Holi.
October 2024: The government increased DA by another 3%, taking it to 53%. This amendment came into effect from July 1, 2024.

8th Pay Commission and future DA hikes

Currently, the recommendations of the 8th Pay Commission are likely to be implemented in 2026. During this time, it will be seen whether DA will be merged with basic pay or not. The recommendations of the 8th Pay Commission may be finalized by the end of the financial year 2025-26 and will be implemented next year. Earlier, under the 7th Pay Commission, two DA hikes are expected in 2025 and one in 2026.

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