Centre approves 2 per cent hike in DA for Central government employees and pensioners

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has sanctioned a 2 per cent increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2025. This decision aims to alleviate the impact of inflation and enhance financial security for government personnel and retirees.

With this revision, the DA and DR rates will rise from 53% to 55% of the Basic Pay/Pension, benefiting an estimated 48.66 lakh government employees and 66.55 lakh pensioners. The annual financial implication of this enhancement is projected to be ₹6,614.04 crore.

The hike follows the established formula based on the recommendations of the 7th Central Pay Commission. The previous DA revision was implemented in July 2024, when it was increased from 50% to 53%.

This latest increment provides a significant financial boost for government employees ahead of the expected rollout of the 8th Central Pay Commission. It underscores the government’s commitment to ensuring fair compensation for public servants and pensioners, mitigating the burden of rising living costs.