Government Announces DA Hike for Central Government Employees to 55%, Download Government Order

The Government of India has officially announced a 2% increase in Dearness Allowance (DA) for Central Government employees. With this revision, the DA has been increased from 53% to 55% of Basic Pay, effective from January 1, 2025. The decision has been conveyed through an Office Memorandum issued by the Department of Expenditure under the Ministry of Finance.

What is Dearness Allowance (DA)?

Dearness Allowance is a cost-of-living adjustment given to government employees and pensioners to help them cope with inflation. It is revised twice a year based on changes in the Consumer Price Index (CPI).

What Does This DA Hike Mean for Employees?

• Increased Salary: Since DA is calculated as a percentage of Basic Pay, a higher DA means an increase in the total salary received by employees.
• Better Financial Support: The increase will help government employees deal with rising prices of essential goods and services.
• Impact on Pension: Retired government employees who receive pension linked to DA will also benefit from this revision.

Key Details of the DA Hike

✅ New DA Rate: 55% of Basic Pay (increased from 53%)
✅ Effective Date: January 1, 2025
✅ Who Will Benefit? All Central Government employees who receive salaries as per the 7th Pay Commission (CPC)
✅ Payment of Arrears: Employees will receive arrears for January and February 2025 along with their March 2025 salary.

Clarifications from the Finance Ministry

• What is Basic Pay? The DA is calculated based on the Basic Pay as per the 7th CPC Pay Matrix. It does not include additional allowances or special pay.
• DA is a Separate Component: The DA will continue to be a separate part of salary and will not be treated as part of Basic Pay.
• Rounding Off Rule: If the DA amount includes a fraction of 50 paise or more, it will be rounded up to the next rupee. Fractions below 50 paise will be ignored.
• No Advance Arrears: Employees will receive DA arrears only after March 2025. There will be no advance payments before that.

Who Else is Covered Under This DA Hike?

🔹 Defence Civilian Employees: The new DA rates will apply to civilian employees who are paid from the Defence Services Estimates. The costs will be covered under the Defence budget.
🔹 Railway & Armed Forces Personnel: Separate DA orders will be issued by the Ministry of Defence and the Ministry of Railways for their employees.
🔹 Indian Audit and Accounts Department Employees: The DA revision has been made in consultation with the Comptroller and Auditor General (CAG), as per Article 148(5) of the Constitution.

Why is the Government Increasing DA?

The Dearness Allowance is revised every six months to help employees adjust to inflation. The government bases these revisions on changes in the Consumer Price Index (CPI). The last increase to 53% was in October 2024, and this new hike continues the regular updates to DA in accordance with economic conditions. This DA revision is expected to bring financial relief to millions of government employees and pensioners, ensuring that their earnings keep up with rising costs of living.