In a Cabinet meeting held on Friday, March 28, a decision was made to increase the Dearness Allowance (DA) for central employees. The DA will be increased by 2%, effective from January 1, 2025. The increased DA will also be included in the salary for April, along with arrears for the previous three months (January-March) This change will benefit approximately 50 lakh central employees and 65 lakh pensioners.
DA Increased Lower Than Expected
It’s important to note that, previously the government had announced a 3% increase in DA in July 2024. Typically, the DA increase ranges from 3% to 4%, but this time it has been limited to just 2%, marking the lowest increase in the last seven years. Additionally, the decision to increase DA came later than usual, as it is typically announced before festivals like Holi and Diwali, but this time it was decided after Holi.
DA Increase Twice a Year
The Dearness Allowance is revised every six months to help maintain the living standard of government employees amid inflation. It is calculated based on the current inflation rate and employees’ basic pay. The DA may after based on whether the employee is in urban, semi-urban, or rural areas.
8th Pay Commission Coming in 2026
Next year, the 8th pay Commission will be implemented, which will raise the minimum salary and pensions for central employees. The 7th pay commission was implemented on January 1, 2016, benefiting nearly 1 crore people. The Pay Commission is updated every 10 years, and it is expected that the 8th Pay commission will be implemented by January 1, 2026, as the term of the 7th Pay Commission will end on December 31, 2025.
— Shashi Rai
 for central employees. The DA will be increased by 2%, effective from January 1){kind=link}