New Delhi, March 19: The central government is expected to announce a 2% hike in Dearness Allowance (DA) for its employees, raising it from 53% to 55%. According to reports, the final decision is likely to be made in the upcoming Cabinet meeting chaired by Prime Minister Narendra Modi. The Cabinet meetings are typically held on Wednesdays.
DA is revised twice a year, in January and July, to help employees cope with inflation. It is calculated as a percentage of an employee’s basic salary. For instance, an employee with a basic pay of INR 1 lakh would receive INR 55,000 as DA after the expected hike. 7th Pay Commission January DA Hike: Centre To Raise Dearness Allowance of Government Employees in Coming Week? Know How Much DA Hike Is Expected.
For an entry-level Multi-Tasking Staff (MTS) employee earning INR 18,000 as basic pay, the DA would increase from INR 9,540 to INT 9,900, adding INR 360 per month to their salary. If the government were to announce a 3% hike instead, the DA would increase to INR 10,080. 7th Pay Commission January DA Hike: AICPI-IW Index Drops 0.5 Points Ahead of Anticipated Hike in Dearness Allowance for Central Government Employees, Here’s What It Means.
The hike will be effective from January 1, 2025, meaning employees will receive arrears for the past months. The last revision in July 2024 had raised DA by 3%, taking it from 50% to 53%.
For pensioners, the equivalent increase is called Dearness Relief (DR). The DA hike plays a crucial role in improving take-home salaries and easing the financial burden of inflation.
The official announcement is expected soon, and employees are advised to check government notifications for further updates.
(The above story first appeared on Today News 24 on Mar 19, 2025 06:32 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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