The Union Cabinet chaired by Prime Minister Narendra Modi on March 28 approved a 2 percent increase in Dearness Allowance (DA) for central employees and Dearness Relief (DR) for pensioners. Now the dearness allowance of central employees will increase from 53 percent to 55 percent. This increase in DA and DR will be effective from January 1, 2025, which is for more than 1 crore serving central government employees and pensioners.

The special thing is that since July 2018, DA has increased first by 4 percent, then by 3 percent, and now by 2 percent. Which is the lowest increase in 7 years. On the other hand, this is the first time after the announcement of the Eighth Pay Commission that DA has been increased.

Now the biggest question is how much will the salary of central employees increase after the government's 2 percent increase. For this, we have taken 4 types of basic. In which Rs 24,600, Rs 37,500, Rs 54,300 and Rs 71,700 have been included. Let us also tell you how much will be the increase in the salary of central employees.

How much will the employees and pensioners benefit?

As we told you the central government has increased the dearness allowance by 2 percent. In such a situation, it is very important to understand how much increase will be seen in 4 types of basic salary.

Increase on Rs 24,600 basic.

If the basic of a government employee is Rs 24,600, then according to 53 percent it will be Rs 13,038. This means that the total payment becomes Rs 37,638 per month. Now when DA has been made 55 percent, then DA will increase to Rs 13,530. This means that the estimated salary will increase to Rs 38,130. So the total increase in salary every month will be Rs 492 per month and Rs 5,904 per year.

Increase in basic salary of Rs 37,500

If the basic salary of a government employee is Rs 37,500, then at the rate of 53 percent it will be Rs 19,875. This means that the total payment becomes Rs 57,375 per month. Now that DA has been increased to 55 percent, the DA will increase to Rs 20,625. This means that the estimated salary will increase to Rs 58,125. So the total increase in salary every month will be Rs 750 per month and Rs 9,000 per year.

Increase in basic salary of Rs 54,300

If the basic salary of a government employee is Rs 54,300, then at the rate of 53 percent it will be Rs 28,779. This means that the total payment becomes Rs 83,079 per month. Now when DA has been increased to 55 percent, DA will increase to Rs 29,865. This means that the estimated salary will increase to Rs 84,165. So the total increase in salary every month will be Rs 1,086 per month and Rs 13,032 per year.

Increase on basic Rs 71,700

If the basic of a government employee is Rs 71,700, then according to 53 percent it will be Rs 38,001. This means that the total payment becomes Rs 1,09,701 per month. Now when DA has been increased to 55 percent, DA will increase to Rs 39,435. This means that the estimated salary will increase to Rs 1,11,135. So the total increase in salary every month will be Rs 1,434 per month and Rs 17,208 per year.

First DA hike after 8th Pay Commission announcement

This is the first DA hike after the announcement of the 8th Pay Commission. The government announced the formation of the 8th Pay Commission on January 16, 2025, which will come into effect from January 1, 2026. It may take at least a year for the new recommendations to come, that is, the next DA hike (for the July-December 2025 cycle) around Diwali this year will be the last under the 7th Pay Commission.

What next for central government employees?

Now the government will make the second DA hike for the July-December period in October-November 2025. But after the 8th Pay Commission recommendations are implemented, the DA will be merged with the basic salary, resetting it to zero. For now, employees will get the increased DA and three months' arrears in the salary for April, which will provide some relief against inflation. Now all eyes will be on the 8th Pay Commission, as the government may soon announce the names of the members of the new Pay Commission, which will submit its recommendations to the Center for revision of salaries and pensions of government employees at all levels within a year.

Who will benefit from the increase in dearness allowance?

The increase in dearness allowance will benefit central government employees, pensioners, and family pensioners. Earlier it was reported that the central government may announce an increase in dearness allowance (DA) and dearness relief (DR) before Holi. According to several media reports, a 2 percent increase was expected, which would benefit both employees and pensioners. The increase in dearness allowance aims to help them deal with the pressure of inflation and increase their monthly income, giving them financial stability and relief.

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