DA was hiked by 2% in March 2025: What is the current dearness allowance of Central government employees? This adjustment aims to combat inflation and includes arrears for January and February 2025
The Union Cabinet in March 2025 increased the Dearness Allowance (DA) for central government employees and pensioners by 2%. The dearness allowance was raised from 53% to 55% of basic pay/pension. This change, effective from January 1, 2025, aims to counteract the effects of inflation.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
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Hence, central government employees and pensioners are now getting 55% of their basic pay or pension as DA. The hike in DA is effective January 1, 2025, so the employees will be getting arrears of their DA along with their salary and pension.
How much will DA central government employees get?
Central government employees would see the dearness allowance increase from 53% to 55% as a result. DA is a part of the basic salary.Here is an example to understand this. Suppose the basic pay of a central government employee is Rs 40,000 and the dearness allowance is 55% of the basic salary. From April 2025, the employee will get the DA of Rs 22,000.
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Remember that an increase in DA, which is reviewed every six months, also raises other income components like TA (Travel Allowance) and HRA (House Rent Allowance). In addition to their March wages, central government personnel will receive this enhanced DA as arrears for January and February 2025.This increase in DA is part of the government's ongoing efforts to support its employees and pensioners in coping with rising living costs. Regular revisions of DA ensure that the real income of government employees remains stable despite inflationary pressures.
What is dearness allowance of central government employees salary?
To lessen the consequences of inflation, government workers and pensioners are given DA, or cost-of-living adjustment allowance. It is computed as a percentage of base pay and is updated regularly in response to shifts in the Consumer Price Index (CPI). To ensure that inflation doesn't reduce the purchasing power of government employees and pensioners, the government normally examines and modifies the DA twice a year.
How will DA be calculated under the 8th Pay Commission?
At present, there is no official or publicly available source that explicitly states how the Dearness Allowance (DA) for central government employees will be calculated from January 1, 2026, or whether it will continue to be based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW).As the precedence suggests, the DA in the 8th pay commission is likely to be calculated on the basis of the recommendations adopted by the central government from the 8th pay commission report.
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This story originally appeared on: India Times - Author:Faqs of Insurances
