There has been great news for central government employees and pensioners. Order has been issued to increase by up to 57% in Dearness Allowance – DA. Along with this, it is also being said to release the 18 -month arrears who have been stopping for a long time. This step will increase the salary and pension of millions of government employees and pensioners.
In this article, we will know in detail how this announcement will affect employees, how DA and Arrear calculation occurs, and how much salary will increase.
Dearness Allowance (DA) 57%: What is the new order?
Dearness allowance (DA) is the additional amount that the government gives to its employees to reduce the influence of inflation. Till now DA was 53%, but it has been increased from January 2025 to 57%.
Effect of DA increasing:
- Increase in salary: Increased DA will increase the total salary of employees.
- Impact on pension: Pensioners will also get direct benefit.
- Arrear Payment: A 18-month arrear can also be released during Covid-19.
Brief description of the scheme
| Aspect of the scheme | Description |
| Name of the scheme | Dearness allowance (DA) increase |
| Applied date | January 2025 |
| Current da rate | 53% |
| New da rate | 57% |
| Arrear period | January 2020 – June 2021 |
| Beneficiary | Central employees and pensioners |
| Potential salary increase | By ₹ 24,624 |
| Declaration status | March 2025 (Potential) |
Da Hike: How much will salary increase?
Increased DA will change the salary of employees. Let us understand how this growth works.
Example:
- If the basic salary of an employee is ₹ 18,000:
- Current DA (53%) = ₹ 9,540
- New DA (57%) = ₹ 10,260
- Increase = ₹ 720 per month
- Whose basic salary is ₹ 2,50,000:
- Current da = ₹ 1,32,500
- New da = ₹ 1,42,500
- Increase = ₹ 10,000 per month
Total annual benefits:
- Employees with minimum salary will benefit by ₹ 8,640 annually.
- Employees with the highest salary will benefit up to ₹ 1,20,000 annually.
What will be 18 months arrears?
Three installments of dearness allowance were stopped from January 2020 to June 2021 during the Covid-19 epidemic. Now the government is considering releasing this stalled arrear.
Possible arrear calculation:
- Basic salary at ₹ 18,000:
- Stopped DA = ₹ 9,540 per month
- Total duration = 18 months
- Total arrears = ₹ 1,71,720
- Basic salary at ₹ 2,50,000:
- Stayed DA = ₹ 1,32,500 per month
- Total duration = 18 months
- Total arrears = ₹ 23,85,000
However, it has not yet been officially confirmed.
How is dearness allowance calculated?
Dearness allowance is calculated based on AICPI (ALL IICA Consumer Price Index) index. This index refers to the level of inflation and is updated every six months.
Calculating Process:
- The average score of the AICPI index is taken.
- DA percentage is extracted by putting it in a certain formula.
- For example:
- Da = aicpi index yer base ear indexbase ear index × 100
- And =
- Base year index
- AicPI index Yearsained Base Year Index
- × 100
Other benefits for central employees
Apart from DA growth and arrears, the government has also given many other benefits:
- Relief to pensioners: Dearness relief (DR) will also be increased at the same rate.
- Holi Bonus: Possibility of giving bonus around Holi in March.
- New Pay Commission: Discussion on the Eighth Pay Commission has started.
Is this news real?
Although media reports and employee organizations have made several claims about this news, the government has not yet made any official statement. The Finance Ministry had earlier also said that it is not possible to release the amount stopped during Covid-19.
conclusion
The news of an increase in dearness allowance (DA) and 18 -month arrears has hoped to government employees and pensioners. This will improve their economic condition and reduce the effect of inflation. However it is necessary to wait for official confirmation.
Disclaimer: The information given in this article is based on various media reports and estimates. The reality will depend on the official announcement of the government.
