Good news for 1.2 crore central government employees and pensioners, announcement on DA hike possible tomorrow

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7th Pay Commission: Central government employees and pensioners may get a big Holi gift this year. The central government may announce an increase in dearness allowance (DA) and dearness relief (DR) just before the festival on March 14.

According to media reports, this may be announced in the cabinet meeting tomorrow, Wednesday, March 12. If it is approved, it will benefit 1.2 crore central employees and pensioners.

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What is the detail

If the government goes ahead with the hike, the revised DA and DR rates will be applicable from January 2025. The government has had a pattern of increasing allowances around Holi to provide festive relief to employees. Every year, the government revises DA and DR twice for January and July. The second annual revision, which comes into effect from July, is usually announced around Diwali in October or November . However, there was no discussion on the DA hike during the Cabinet meeting held in New Delhi on March 5, 2025. The last time the DA was hiked was in July 2024, when it was increased from 50% to 53%. Earlier on March 7, 2024, the Cabinet approved a hike in DA from 46% to 50%, which was officially announced on March 25, 2024, a few days before Holi.

DA may increase by 2%

According to AICPI-IW data of December 2024, DA is expected to increase by 2% this time. The government had increased DA and DR by 3% on October 16, 2024 under the 7th Pay Commission, making both 53% from July 1, 2024. Now all eyes are on the next hike. Apart from this, in January 2025 the government announced the plans for the 8th Pay Commission, which is expected to be implemented by next year. Since then, employees and pensioners have been expecting substantial revision in salary and pension.

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