The central and state governments have announced a 2% hike in Dearness Allowance (DA) for their employees and pensioners. This increase, which came into effect from January 1, 2025, aims to help employees cope with rising inflation and improve their financial well-being.
Good News for Central Government Employees and Pensioners
The central government has approved a 2% increase in DA for its employees and Dearness Relief (DR) for pensioners. This decision has taken the DA from 53% to 55% of the basic salary. It is based on the recommendations of the 7th Central Pay Commission and will provide significant relief to millions of employees and retirees.
State Government Employees Also Get the Benefit
After the central government’s move, several state governments, including Rajasthan, have also decided to give the same 2% hike to their employees and pensioners. This increase will benefit about 6.5 lakh active state government employees and 3.9 lakh pensioners in Rajasthan alone.
Salary and Pension Increase Details
Here is how the 2% DA hike will impact salaries:
- Employees with a basic salary of ₹25,500 will now get ₹510 more per month.
- Their DA amount will increase from ₹13,515 to ₹14,025.
- This means an annual benefit of ₹6,120.
- Pensioners are expected to receive the DA increase as a direct cash benefit.
- For employees, the extra amount may be credited into their GPF (General Provident Fund) accounts.
Financial Burden on the Government
The DA hike is expected to cost the state exchequer ₹820 crore per month, adding up to around ₹9,840 crore annually. Despite this heavy burden, the government has taken this step to support employees during tough economic times.
Three-Month Backlog to Be Paid
Along with the hike, employees will also receive arrears for three months — January, February, and March 2025 — credited directly to their bank accounts. This move is seen as a festive gift, especially since it comes around Ram Navami.
Conclusion
This 2% DA hike is a welcome step for both central and state government employees. It will help reduce the impact of inflation and boost employee morale. Employees are advised to check their salary slips or contact their HR departments for updated details.