7th Pay Commission DA Hike: Union Cabinet Approves 2% Increase in DA, DR for Central Government Employees and Pensioners

New Delhi, March 28: The Union Cabinet on Friday increased the Dearness Allowance (DA) by 2 percentage points effective from January 1 this year, benefitting nearly 1.15 crore central government employees and pensioners. 7th Pay Commission: Why DA Hike Announcement For Central Govt Employees Is Getting Delayed? Know When Will It Be Announced.

The Union Cabinet has approved the release of an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2025, representing an increase of 2 per cent over the existing rate of 53 per cent of the basic pay/pension, to compensate against price rise, said Information and Broadcasting Minister Ashwini Vaishnaw after the Cabinet meeting. 7th Pay Commission DA Hike: How Much Dearness Allowance Increase Can Central Govt Employees Expect? Check Details.

The combined impact on the exchequer on account of increase in both DA and DR would be Rs 6,614.04 crore per annum. The move will benefit about 48.66 lakh central government employees and 66.55 lakhs pensioners. The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. DA and DR is paid to adjust the cost of living and protect employees and pensions from inflation.