DA Hike: Excellent news for central govt workers as Cupboard approves 2% DA hike – Particulars

The Union Cupboard on Friday elevated the Dearness Allowance (DA) by 2 per cent for central authorities workers. The transfer will profit over one crore workers forward of the much-awaited eighth Pay Fee. With this revision, DA will rise from 53 per cent to 55 per cent, offering a wage increase for workers.

This can profit about 48.66 lakh Central Authorities workers and 66.55 lakhs pensioners.

Union Minister Ashwini Vaishnaw mentioned that the DA hike might be efficient from January 1, 2025.

“The Union Cupboard chaired by Prime Minister Narendra Modi authorised to launch of a further instalment of Dearness Allowance (DA) to Central Authorities workers and Dearness Aid (DR) to pensioners w.e.f. 01.01.2025 representing a rise of two% over the prevailing price of 53 per cent of the Fundamental Pay/Pension, to compensate towards value rise,” the federal government mentioned in a launch.

The final enhance was on July 1, 2024. Earlier to this, the federal government hiked DA/DR by 4 proportion factors to 50 per cent in March, 2025. This was efficient from January 1, 2024. 

This enhance is in accordance with the accepted method, which is predicated on the suggestions of the Seventh Central Pay Fee.

The mixed influence on the exchequer on account of the rise in each Dearness Allowance and Dearness Aid could be Rs. 6614.04 crore each year.

This enhance is in accordance with the accepted method, which is predicated on the suggestions of the seventh  Central Pay Fee.

What’s DA?

Dearness Allowance (DA) is a monetary profit that the federal government workers to offset inflation and guarantee their salaries stay in step with rising residing prices.

Whereas primary salaries are decided by a pay fee each 10 years, DA ensures periodic changes to assist workers handle inflation.

DA and DR are paid to regulate the price of residing and defend workers and pensions from inflation.