On March 28, 2025, the Union Cabinet headed by Prime Minister Narendra Modi approved a 2% hike in DA (Dearness Allowance) for central employees.
The increase in DA is going to be effective from January 1, 2025. The central employees will get their increased DA in April alonwith their arrears for January, February and March.
Increased DA
Although the government has increased the DA by 2% but it’s the lowest increase since last 7 years. Earlier from July 2018, the government has been increasing the DA by 3% to 4% everytime.
So, with this increase of 2% for the current period, the DA has now increased from 53% to 55%.
For example, if an employee's current salary is Rs 25,000. Then with this increment, now he/she will get more Rs 500. Thus, now he will get a total salary of Rs 25,500 instead of just Rs 25,000.
With this hiked DA, an employee will get a benefit of Rs 6000 annually.
Earlier than this, on 12 March 2024, the government increased DA from 50% to 53% of the Basic Pay with effect from July 1, 2024
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