The central government may surprise its 1.2 crore employees and pensioners this Holi. According to media reports, the central government may give good news to its employees and pensioners before Holi. The Holi is on March 14 this year, and speculation is rife that the government will announce a hike in the dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners before the festivities begin. Traditionally, the Union Cabinet meetings are held every Wednesday.
“The hike is expected to be announced in the next meeting of the Union Cabinet,” NDTV Profit quoted Rupak Sarkar, president of the Confederation of Central Government Employees and Workers. Moreover, the increase in DA and DR is aimed at providing relief from inflation. Likewise, the DA/DR is hiked twice a year. The first increase comes into effect from January 1 and the another one is effective from July 1.
It is worth noting that the central government employees and pensioners are paid under the 7th Pay Commission. The Union Cabinet may announce DA/DR hike in Wednesday’s meeting as Holi bonanza, and arrears will be paid to cover the period from January to March. Notably, in October last year, the government increased DA/DR by 3% to 53%.
7th Pay Commission: Expected DA/DR Hike
“As per our calculation, the dearness allowance hike will probably be of 2%,” Rupak Sarkar told NDTV Profit. However, several experts predict that the government may announce a 3-4% increase in DA/DR for central employees and pensioners. Presently, central government employees receive Rs 18,000 as minimum basic pay. Meanwhile, central government pensioners get Rs 9,000 as minimum basic pension.
What The New Salary Could Be?
For Employees
If an individual has the current minimum basic salary of Rs 18,000 and the DA for January 2025 is increased by 2%, his/her minimum salary will rise by Rs 360.
Under current 53% DA, he/she is entitled to the salary (minimum basic pay + DA) of Rs 27,540. However, if the DA is increased to 56%, he/she will be paid Rs 27,900.
If the DA is increased by 3%, it becomes 56%. At this rate the minimum basic salary will rise by Rs 540 to Rs 28,080 monthly.
If the DA is increased by 4%, it becomes 57%. At this rate the minimum basic salary will rise by Rs 720 to Rs 28,260 monthly.
For Pensioners
If an individual has the current minimum basic pension of Rs 9000 and the DR for January 2025 is increased by 2%, his/her minimum pension will rise by Rs 180.
Under current 53% DR, he/she is entitled to the pension (minimum basic pay + DR) of Rs 13,770. However, if the DA is increased to 55%, he/she will be paid Rs 13,950.
If the DR is increased by 3%, it becomes 56%. At this rate the minimum basic pension will rise by Rs 270 to Rs 14,040 monthly.
If the DR is increased by 4%, it becomes 57%. At this rate the minimum basic pension will rise by Rs 360 to Rs 14,130 monthly.
