The Union Cabinet meetings are usually held every Wednesday. It was expected that the Dearness Allowance (DA) and Dearness Relief (DR) can be hiked before Holi, but it didn’t happen. The 1.2 crore central government employees and pensioners are now eagerly waiting for the announcement of DA/DR hike.

Moreover, the increase in DA and DR is aimed at providing relief from inflation. Accordingly, 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. Notably, the central government employees and pensioners are paid under the 7th Pay Commission. The Union Cabinet may announce DA/DR soon, and arrears will be paid to cover the period from January to March. 

According to media reports, a final decision on DA/DR hike may be taken in an upcoming Cabinet meeting led by Prime Minister Narendra Modi, typically held on Wednesdays.

Currently, central government employees receive Rs 18,000 as minimum basic pay. Meanwhile, central government pensioners get Rs 9,000 as minimum basic pension. In October last year, the government increased DA/DR by 3% to 53%.

7th Pay Commission DA Hike: What To Expect?

Rupak Sarkar, president of the Confederation of Central Government Employees and Workers, recently told NDTV Profit, “As per our calculation, the dearness allowance hike will probably be of 2%.” Several experts predict that the government may announce a 3-4% increase in DA/DR for central employees and pensioners.

What Does It Mean 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.

Moreover, 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.

What Does It Mean For Pensioners?

If an individual has the current minimum basic pension of Rs 9,000 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.