The Union Cabinet on Friday approved a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, benefitting nearly 1.15 crore individuals.
Revised DA Effective from January 1, 2025
Following the Cabinet meeting, Union Minister Ashwini Vaishnaw announced that the additional instalment of DA and Dearness Relief (DR) will be applicable from January 1, 2025. The increase raises DA from 53% to 55% of basic pay/pension, providing relief against inflation.
The move will impact approximately 48.66 lakh government employees and 66.55 lakh pensioners, with a total cost of ₹6,614.04 crore per annum to the exchequer.
Salary Hike Ahead of 8th Pay Commission
The last DA hike was in July 2024, when rates increased from 50% to 53%. With the latest revision, employees will see a higher take-home salary, particularly ahead of the anticipated 8th Pay Commission.
DA is revised twice a year to help employees combat inflation. For instance, an employee with a basic pay of ₹1 lakhwill now receive ₹55,000 as DA under the new 55% rate.
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