7th Pay Commission DA Hike: There is great news for government employees. The government can give a big gift to lakhs of employees and pensioners this week.
According to different media reports, the central government may announce a 2 percent increase in dearness allowance (DA) and dearness relief (DR) for its employees before the festival of Holi (March 14, 2025). It is expected that an announcement on DA hike can be made in the cabinet meeting on Wednesday this week. Let us tell you that under the 7th Pay Commission implemented on January 1, 2016, this salary hike will directly benefit more than 12 million central government employees and pensioners.
What is the detail
According to a report by NDTV Profit, the dearness allowance of employees will increase from the current level of 53 per cent of the basic pay to 55 per cent. However, Prime Minister Narendra Modi is expected to announce the final decision in the Union Cabinet. The last time the dearness allowance was hiked was in October 2024. Central government employees got a 3 per cent hike, taking their DA to 53 per cent of the basic pay as compared to the previous level of 50 per cent. According to the report, this hike came into effect from July 1, 2024, and also applies to pensioners. Dearness Allowance is a part of the salary of central government employees and dearness relief is given to pensioners.
How to calculate DA?
According to a Bajaj Finserv report, dearness allowance is a salary component for central government employees, which the government gives them to help mitigate the impact of rising inflation in the economy. According to the data, the increase in dearness allowance for central government employees is calculated based on the percentage increase in the 12-monthly average of the All India Consumer Price Index (AICPI) i.e. inflation indicator for the period ending June 2022. According to reports, the central government revises the payment of allowances in January and June every year, but the announcement is made in March and September.
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