7th Pay Commission: Central government employees and pensioners are eagerly waiting for the news of increase in dearness allowance (DA). According to different media reports, the government may approve a 2% DA hike.
It is reported that the government may increase DA by 2% by the end of this month. After this, it may increase from 53% to 55%. According to some reports, Prime Minister Narendra Modi may take a final decision on this in the cabinet meeting to be held on any coming Wednesday.
What is the detail
The hike in dearness allowance is announced twice a year (from January and July), which increases the salary of central government employees according to the inflation rate. Dearness Allowance is given to government employees, while Dearness Relief is given to pensioners.
How much salary will you get
The 2% DA hike will result in an increase of Rs 360 in the salary of an entry-level employee with a basic salary of Rs 18,000 per month, effective from January 1, 2025. For example, an employee with a basic salary of Rs 18,000 currently gets Rs 9,540 (53%) as DA. A 2% hike will increase their DA to Rs 9,900, increasing their salary by Rs 360. However, a 3% hike will mean an increase of Rs 540, taking their DA to Rs 10,080.
Previous DA hike
Let us tell you that the last DA hike was effective from July 1, 2024, with an increase of 3%, taking the DA from 50% to 53% of the basic pay. Pensioners also got a similar increase in their dearness relief. The Government of India led by Prime Minister Narendra Modi has constituted the 8th Pay Commission to discuss the increase in the basic pay of government employees. It will be effective from January, 2026.
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