Mumbai, March 14: As the nation celebrates Holi today, central government employees await a crucial announcement on their salaries. The Union Cabinet, led by Prime Minister Narendra Modi, is set to discuss a 2% hike in dearness allowance (DA) in its upcoming meeting. If approved, this will raise the DA from 53% to 55% of the basic pay, effective from January 1, 2025. However, this will be the lowest DA hike since July 2018, when the government last announced a mere 2% increase. The decision will impact millions of employees and pensioners across the country.
In the previous revision in October 2024, the government had approved a 3% DA hike, increasing it from 50% to 53%. The biannual revision, done in January and July, helps offset inflation for government employees. A lower-than-expected hike may come as a disappointment, especially amid rising costs. Employees with a basic salary of INR 18,000 may see an increase of INR 360 per month if the proposed hike is approved. With the Cabinet meeting expected to make a final call in its upcoming meeting, let’s know what can be expected. 7th Pay Commission January DA Hike: Union Cabinet Likely To Approve Lowest Hike in DA, DR in 7 Years for Central Govt Employees and Pensioners; Check Details.
How Much DA Hike Can Be Expected?
The upcoming dearness allowance (DA) hike is likely to be 2%, increasing the DA from 53% to 55% of the basic pay. If implemented, central government employees with a basic salary of INR 18,000 will receive an additional INR 360 per month. Those earning INR 30,000 as basic pay will see their DA rise from INR 9,540 to INR 9,900, marking an increase of INR 360. While a 2% hike seems probable, some reports suggest a possibility of a 3% increase, which would take DA to 56% and result in a higher monthly salary boost. 7th Pay Commission: Centre To Announce 2% DA Hike for Central Government Employees Before Holi 2025? What Was the Dearness Allowance Raise in March Last Year? Check Details.
A 3% hike would mean an additional INR 540 for employees with an INR 30,000 basic salary, bringing their DA to INR 10,080 per month. However, given recent trends, experts believe the government may stick to a 2% revision. The final decision will be taken in today’s Cabinet meeting, and once approved, the revised DA will be effective from January 1, 2025.
(The above story first appeared on Today News 24 on Mar 14, 2025 07:25 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
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