As the festival of Holi approaches, speculation is rife regarding the potential announcement of an increase in Dearness Allowance (DA) for central government employees and pensioners. Following the trends of previous years, the government may announce the DA hike after the cabinet meeting tomorrow, March 5, 2025. This move is eagerly anticipated, as employees are hoping for a DA boost before Holi, which falls on March 8, 2025.
Central Government Employees Await 3% DA Increase in Cabinet Meeting Tomorrow
Under the 7th Pay Commission, the government revises DA twice a year—once in January and again in July. This time, the government is expected to announce a 3% increase, a move that would be beneficial to the over one crore central government employees and pensioners who receive DA as part of their monthly pay.
Government Likely to Announce DA Hike Before Holi
If the government follows the pattern of previous years, it is likely that the DA increase will be implemented from January 1, 2025, even if the announcement happens closer to Holi. Last year, the DA was increased by 4% in March 2024, and a further 3% was added in October 2024, bringing the total DA to 53%. This year, the expected hike of 3% would bring DA closer to 56% of the basic pay.
For example, employees earning a basic salary of Rs 18,000 per month will see their DA increase by Rs 540, bringing their total monthly salary to Rs 18,540. Similarly, employees earning Rs 30,000 as their basic salary would see an increase in DA from Rs 9,000 to Rs 9,540 with a 3% hike.
The impact of this increase will be significant for employees and pensioners alike. In addition to the financial benefit, this hike is a gesture of appreciation and support from the government, which remains committed to addressing inflation and the financial well-being of its employees.