3% DA Increment Announced for Central Government Employees and Pensioners

Over 1 Crore Government Employees are Expected to Benefit from the DA Hike

The government has announced a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR) for both pensioners and central government employees. The news arrived just before Diwali. According to estimates, this will benefit around one crore employees and pensioners. 

3% DA Hike Announced by the Government

According to government reports, the salary increment will be effective from 1 July 2025, and the employees and pensioners are also scheduled to receive payments for previous months. 

A recent government release says, “The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024, representing an increase of 3% over the existing rate of 50% of the Basic Pay/Pension, to compensate against the price rise.”

What is the Purpose of Dearness Allowance?

Dearness Allowance (DA) is the additional money that aids government employees and pensioners in keeping up with the increasing cost of living. It is generally increased twice a year. 

DA is linked with the Consumer Price Index (CPI), which calculates the changes in price for goods and services. Overall, it helps government employees and pensioners maintain the same standard of living amidst growing inflation.

What was the Last DA Hike?

The government of India announced the first DA hike at the start of the year, raising both DA and DR by 2%. This increased the DA from 53% to 55% of the basic salary. After the second increment, the Dearness Allowance is now 58% of basic pay and pension. 

The revision comes under the 7th Pay Commission, a commission set by the centre to review and recommend adjustments to the salary structure of government employees and pensioners from different departments.

To sum up, the Indian government’s move to allow a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) is a way of helping both central government employees and pensioners cope with inflation. It is estimated that over 1 crore people will benefit from this. This is the second DA hike of the year; the first one was announced earlier this year with a 2% hike.