Central government employees are in for a financial boost as the government is expected to announce a 3% increase in Dearness Allowance (DA) by the end of February. According to reports, this hike will be effective from January 1, 2025, taking the total DA to 56% of basic salary.
Government Likely to Announce DA Hike Before Holi
Looking at previous trends, the government usually announces the January DA hike in late February or early March. With Holi falling on March 14 this year, an official declaration is expected before the festival. A cabinet meeting is scheduled for February 26, and the government may confirm the DA increase soon after.
Dearness Allowance Set to Reach 56%
In October 2024, the government had raised DA by 3%, from 50% to 53%, with the increase being effective from July 1, 2024. Prior to that, in March 2024, a 4% hike had taken DA from 46% to 50%. Currently, both central employees and pensioners receive 53% DA and Dearness Relief (DR). If the expected 3% hike is approved, DA will rise to 56% of basic pay.
No Plans to Release Pending COVID-19 DA Arrears
Many employees have been hoping for the release of the 18 months’ worth of DA and DR arrears that were put on hold during the COVID-19 pandemic. However, during the monsoon session of Parliament, Union Minister of State for Finance Pankaj Chaudhary confirmed that the government has no plans to release these arrears. The DA freeze, which affected payments from January 2020, July 2020, and January 2021, was implemented due to the economic impact of the pandemic.
With the official announcement expected soon, central employees can look forward to a higher salary boost with the DA reaching 56% in early 2025.
