7th Pay Commission: The Union Cabinet approved a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR), effective from January 1, 2025. The DA/DR for the central government employees and pensioners now stands at 55%. Currently, there are about 48.66 lakh central government employees and 66.55 lakhs pensioners.

“The Union approved to release of an additional instalment of DA to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53% of the Basic Pay/Pension, to compensate against price rise,” said Union Minister Ashwini Vaishnaw during the announcement. Furthermore, the central government announced that it will pay the arrears to cover the period from January to March.

Notably, the DA/DR increase is aimed at providing relief from inflation, and it is hiked twice a year. The first increase coming into effect from January 1 and the other one is effective from July 1. Currently, the central government employees and pensioners are paid under the 7th Pay Commission. The central government, in October last year, raised the DA/DR by 3% to 53%.

7th Pay Commission: New Salary

The central government employees currently receive Rs 18,000 as minimum basic pay. Meanwhile, central government pensioners get Rs 9,000 as minimum basic pension, under the 7th Pay Commission.

At 2% hike, now the DA stands at 55%. If an individual gets the minimum basic salary of Rs 18,000, DA increase of 2% would translate into the increase of Rs 360 in his/her salary. Therefore, they will be paid Rs 27,900 per month (minimum basic salary + DA).

DR too now stands at 55% with the latest increase. If an individual has the current minimum basic pension of Rs 9,000, DR increase of 2% would translate into the increase of Rs 180 in his/her pension. Therefore, they will be paid Rs 13,950 per month (minimum basic pension + DR).

When DA Arrears Will Be Paid?

The Central government will pay its employees and pensioners their increased DA/DR along with their April 2025 salary/pension. This means that they will receive their DA/DR arrears for January, February, and March 2025 with the salary/pension of April 2025. 

• Employees earning a minimum basic salary of Rs 18,000 will get an additional Rs 360 monthly, resulting in total arrears of Rs 1,080.
• Pensioners with a basic pension of Rs 9,000 will receive a monthly increase of Rs 180, accumulating total arrears of Rs 540.