Dearness Allowance (DA) Hike for Central Government Employees Delayed: When Will the Announcement Come?

Central government employees and pensioners are eagerly waiting for the official announcement regarding the increase in dearness allowance (DA) and dearness relief (DR). The decision, which was expected before the Holi festival, has already been delayed by a week. Initially, reports suggested that the Union Cabinet would take up the matter in its March 19 meeting, but no decision was announced.

Now, according to sources, the approval could come at any time, as the delay is primarily due to government procedures and financial clearances.

What is Dearness Allowance (DA), and Who Gets It?

Dearness allowance is an additional amount paid to government employees and pensioners to help them cope with the rising cost of living. It is directly linked to their basic salary and is revised twice a year—once for the January to June period and again for July to December.

DA is given to:

• Current central government employees
• Pensioners (dearness relief – DR)
• Public sector undertaking (PSU) employees

However, private sector employees do not receive DA.

Usually, the January-June DA hike is announced before Holi, and the July-December DA hike is announced before Diwali. But this time, the January-June 2025 DA revision has been delayed.

Expected Increase in DA for 2025

Based on the All-India Consumer Price Index (AICPI) data for July-December 2024, experts believe that a 2% hike is possible. This means:

• The current DA of 53% may increase to 55%
• The government will provide arrears for January, February, and March once the hike is approved

However, some experts predict that the DA increase could go up to 4%, as the Reserve Bank of India (RBI) recently raised its inflation forecast to 4.8% from the earlier 4.5%.

When Will the Government Announce the DA Hike?

Since the decision has already been delayed, it is likely that the Union Cabinet will approve the DA hike in its next meeting, which is expected to take place within a week. Once approved, the hike will be effective from January 2025, and employees may receive pending arrears along with their April salary.

How Much Will Employees and Pensioners Benefit?

Here’s how the DA hike will impact salaries and pensions:

• For employees with a basic salary of ₹18,000
  • 2% DA hike = ₹360/month increase
  • Annual benefit = ₹4,320
• For pensioners with a basic pension of ₹9,000
  • 2% DA hike = ₹180/month increase
  • Annual benefit = ₹2,160

If the DA hike is 4%, the benefits would be twice as much.

Will This Be the Lowest DA Hike in 7 Years?

While the exact percentage of the DA hike is still uncertain, if the increase is only 2%, it will be the lowest DA hike in the last seven years. This could be disappointing for government employees and pensioners, as inflation continues to affect household budgets.

Final Thoughts

The DA hike announcement is now just a matter of time. While it will increase salaries and pensions, it may not be as high as employees expected. The government’s final decision is eagerly awaited, as it will provide much-needed relief from inflation. Now, all eyes are on the Union Cabinet’s next move.