The central government has recently given a great news for its millions of employees and pensioners. The cabinet meeting chaired by Prime Minister Narendra Modi approved an increase of 2% in dearness allowance (DA) and Dearness Relief – Dr. This decision will be applicable from 1 January 2025, which will benefit about 1 crore government employees and pensioners.
Dearness allowance is an important part of the salary of government employees, which helps them to deal with increasing inflation. This time the DA has been increased from 53% to 55%, which will increase their monthly income. Let us know in detail what will affect their salary and pension.
What is dearness allowance (DA)?
Dearness allowance is a financial assistance to government employees and pensioners, which is given to protect them from the influence of increasing inflation. It is decided on the basis of All India Consumer Price Index (AICPI).
Important point:
- The purpose of DA: To balance the increasing cost of living due to inflation.
- Who gets: Central and state government employees, employees of public undertakings, and pensioners.
- How to determine: Amendment is made every 6 months based on AICPI data.
- Current Status: From January 2025, the DA rate has increased from 53% to 55%.
Effect of DA Hike: Impact on salary and pension
The 2% DA growth declared by the government will directly affect salary and pension. Let’s understand it in detail:
Effect on salary:
- If the basic salary of an employee is ₹ 18,000:
- First Da: ₹ 18,000 × 53% = ₹ 9,540
- Now DA: ₹ 18,000 × 55% = ₹ 9,900
- Monthly growth: ₹ 360
- Annual Growth: ₹ 4,320
- If the basic salary of an employee is ₹ 36,500:
- First Da: ₹ 36,500 × 53% = ₹ 19,345
- Now DA: ₹ 36,500 × 55% = ₹ 20,075
- Monthly growth: ₹ 730
- Annual Growth: ₹ 8,760
Effect on pension:
- If the original pension of a pensioner is ₹ 9,000:
- First DR: ₹ 9,000 × 53% = ₹ 4,770
- Now Dr: ₹ 9,000 × 55% = ₹ 4,950
- Monthly growth: ₹ 180
- Annual Growth: ₹ 2,160
- If the original pension of a pensioner is ₹ 15,000:
- First DR: ₹ 15,000 × 53% = ₹ 7,950
- Now DR: ₹ 15,000 × 55% = ₹ 8,250
- Monthly growth: ₹ 300
- Annual Growth: ₹ 3,600
DA Hike Summary (Table Format)
| Description | First (53%) | Now (55%) | Monthly growth | annual growth |
| Basic Salary: ₹ 18,000 | ₹ 9,540 | ₹ 9,900 | ₹ 360 | ₹ 4,320 |
| Basic Salary: ₹ 36,500 | ₹ 19,345 | ₹ 20,075 | ₹ 730 | ₹ 8,760 |
| Basic Pension: ₹ 9,000 | ₹ 4,770 | ₹ 4,950 | ₹ 180 | ₹ 2,160 |
| Basic Pension: ₹ 15,000 | ₹ 7,950 | ₹ 8,250 | ₹ 300 | ₹ 3,600 |
DA arrear payment
The government has announced that the DA arrears from January to March 2025 will be given with a salary or pension of April 2025. This means that:
- Whose basic salary or pension is low (eg ₹ 18,000 or ₹ 9,000), they will get around ₹ 1,080 and ₹ 540 respectively.
- Whose basic salary or pension is high (eg ₹ 36,500 or ₹ 15,000), they will get around ₹ 2,190 and ₹ 900 respectively.
History of change in dearness allowance
The following changes have taken place in DA in the last few years:
| Year | DA rate (%) |
| January 2023 | 42% |
| July 2023 | 45% |
| January 2024 | 50% |
| July 2024 | 53% |
| January 2025 | 55% |
Financial impact on government
This DA hike will have an additional burden of about ₹ 6,614.04 crore every year on the government treasury. However, this expenditure is considered necessary to provide relief to millions of employees and pensioners.
Future expectations
After this DA hike, everyone’s eyes are upcoming 8th pay commission It rests on After its formation, there is a possibility of major changes in the salary and pension structure of government employees and pensioners.
conclusion
This DA hike announced by the government has definitely brought relief for government employees and pensioners. Although this increase has been relatively low (2%), it will improve their monthly income.
Disclaimer:
This article provides information based on government announcements. The actual benefit will depend on the individual salary structure of employees and pensioners.
