The central government may surprise its employees and pensioners this Holi. Several media reports suggest the central government may give good news to its employees and pensioners before Holi. The festival of colours is on March 14 this year, and speculation is rife that the government might announce a hike in the dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners before the festivities begin. The upcoming increase in DA and DR is aimed at providing relief from inflation.

It is worth noting that the central government employees and pensioners are paid under the 7th Pay Commission. The DA/DR is increased twice a year, as of now. The first increase comes into effect from January 1 and the another one is effective from July 1. In other words, the first DA hike of 2025 will be in effect from January 1, 2025.

The official announcement may be made in March 2025 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

According to media reports, 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 3%, his/her minimum salary will rise by Rs 540.

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 28,080.

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 DA for January 2025 is increased by 3%, his/her minimum salary will rise by Rs 270.

Under current 53% DA, he/she is entitled to the pension (minimum basic pay + DA) of Rs 13,770. However, if the DA is increased to 56%, he/she will be paid Rs 14,040.

If the DA is increased by 4%, it becomes 57%. At this rate the minimum basic salary will rise by Rs 360 to Rs 14,130 monthly.