The central government has approved an increase of 2% in Dearness Allowance (DA) and Dearness Relief (DR) for central employees and pensioners on March 28, 2025. This increase will be effective from January 1, 2025, which will increase the DA/Dr rate from 53% to 55%. About 48.66 lakh employees and 66.55 lakh pensioners will benefit from this.
This increase has been done on the basis of the formula of the 7th Pay Commission and is to reduce the impact of inflation. However, this is the lowest increase in the last few years, as DA has been growing 3-4% every time since 2018. Now employees and pensioners will get arrests from January to March along with increased DA/Dr in April.
What is DA/Dr?
Dearness Allowance (DA) is an allowance given to government employees, which helps reduce the influence of inflation. At the same time, Dearness Relief (DR) is the same allowance to pensioners. These are implemented every 6 months from January and July, but sometimes the announcement may be delayed.
Importance of DA/Dr
- Keeps the salaries of the employees right according to inflation.
- Brings stability in pensioners’ income.
- The 7th Pay Commission is decided on the basis of the formula.
- Calculated based on AICPI-IW (index).
DA/DR Great Description
| Description | Information |
| Rate of increase | 2% (increased from 53% to 55%) |
| Effective date | 1 January, 2025 |
| Beneficiary | 48.66 lakh employees + 66.55 lakh pensioners |
| Final increase | July 2024 (50% to 53%) |
| Arrows | January-March 2025 dues will be found in April salary |
| Total financial impact | ₹ 7,716 crore (additional expenditure on government) |
How much will the salary increase?
How much will the employees and pensioners benefit from this increase depend on their basic pay/pension. Some examples are given below:
- If the basic pay is ₹ 18,000:
- Monthly Benefits: ₹ 360 (2% of ₹ 18,000)
- Annual Benefits: ₹ 4,320
- If the pension is ₹ 9,000:
- Monthly Benefits: ₹ 180
- Annual Benefits: ₹ 2,160
Preparation of 8th Pay Commission
This may be the last DA increase under the 7th Pay Commission, as the government has announced the 8th Pay Commission, which will be applicable from January 1, 2026. Next year DA can be merged into basic pay, which will begin calculating the new pay structure.
conclusion
This increase of the central government has brought relief for employees and pensioners, although it is less than in previous years. Now everyone is eyeing the 8th Pay Commission, which will announce a new pay structure next year. At present, employees will get an increase in April salary and the benefit of arms.
Disclaimer
This increase is for central employees and pensioners. State governments can implement separate rules. DA/DR is calculated based on AICPI-IW data and is officially announced by the government.
