The central government is expected to deliver good news to its employees by the end of February, with an increase in Dearness Allowance (DA) under the 7th Pay Commission. Reports suggest that the government may approve a 3% hike in DA, which will be effective from January 1, 2025.
Government Likely to Announce DA Hike Before Holi
Following past trends, the government typically announces the DA hike for January in late February or early March. This year, Holi falls on March 14, and the government is expected to declare the DA hike before the festival. A key cabinet meeting is scheduled for Wednesday, February 26, after which the official announcement is likely.
Dearness Allowance to Increase to 56%
Last year, the DA was increased by 3% in October but was implemented retroactively from July 1. Prior to that, in March 2024, the government raised DA by 4%, bringing it to 50% of basic pay. Currently, DA stands at 53%, and with the anticipated 3% increase, it will reach 56%. Pensioners receiving Dearness Relief (DR) will also benefit from this adjustment.
No Relief on 18-Month DA Arrears Stopped During COVID-19
Despite employee expectations, the government has confirmed that it is not considering the release of the 18-month DA and DR arrears that were frozen during the COVID-19 pandemic. Union Minister of State for Finance, Pankaj Chaudhary, clarified during a recent Parliament session that the withheld payments from January 2020, July 2020, and January 2021 will not be disbursed, citing economic constraints caused by the pandemic.
With the upcoming DA hike, central employees can expect a boost in their salaries, but the pending arrears remain a distant hope. Stay tuned for the official announcement by the end of February.
