BIG Decision On DA Hike Likely Today? Govt Employees May See Lowest DA Hike In 7 Years

New Delhi: 7th Pay Commission DA, DR Hike Update: In all likelihood, the union cabinet may take the much expected big decision on Dearness Allowance (DA) and Dearness Relief (DR) Hike for lakhs of govt employees and pensioners.

Once approved, the latest/increased DA will come into effect retrospectively from January 2025. Central government employees will get the hiked salary for the month of March along with  two months’ arrears i.e, for the month of January and February. Serving government employees receive DA, while pensioners receive DR.

A report in NDTV Profit, quoting president of the Confederation of Central Government Employees and Workers Rupak Sarkar said, “The hike is expected to be announced in the next meeting of the Union Cabinet". 

Central Govt Employees May Get Lowest DA Hike In 7 Years

Meanwhile another report in the Financial Express said that government employees may see the lowest DA hike in the last 7 years. DA and DR are anticipated to grow by 2 percent this time around while all eyes are glued to the official announcement from the central government. The anticipated 2 percent increase in DA will mark the lowest DA hike since July 2018.

The last DA Hike was announced in October 2024. Union Cabinet approved a 3 percent Dearness Allowance (DA) increase for central government employees. A dearness allowance of 53 percent of basic pay is being provided to central government employees, as opposed to the previous 50 percent.

Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living. 

The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July.

Consumer Price Index for Industrial Workers (2016=100) – December, 2024: The All-India CPI-IW for December, 2024 decreased by 0.8 point and stood at 143.7 (one hundred forty three point seven) as compared to 144 in November 2024. 

On October 16, 2024, the government hiked DA and DR by 3% under the 7th Pay Commission, bringing them to 53%, with effect from July 1, 2024. This consistent pattern of changes will be followed in the upcoming DA and DR announcement.