Central government employees and pensioners may receive a big Holi gift this year, as the Union government is likely to announce a hike in Dearness Allowance (DA) and Dearness Relief (DR) this week. If approved, the revised DA and DR rates will be applicable from January 2025, benefiting around 1.2 crore employees and pensioners.
Expected DA Hike: What to Expect
- The government revises DA and DR twice a year—in January and July.
- The last increase was in July 2024, when DA was raised from 50% to 53%.
- If approved, the new DA hike will be effective from January 2025.
- A 2% increase is expected, based on AICPI-IW data for December 2024.
The announcement, if made, will likely follow the tradition of revising DA around Holi, providing financial relief to employees and pensioners. The second revision for the year, effective from July 2025, is expected around Diwali in October or November.
Government’s DA Hike History
- March 7, 2024: DA increased from 46% to 50%, officially announced on March 25, 2024, just before Holi.
- July 2024: DA raised from 50% to 53%, effective from July 1, 2024.
- October 16, 2024: 3% DA hike announced under the 7th Pay Commission, bringing DA to 53%.
8th Pay Commission and Salary Revisions
- The government announced the 8th Pay Commission in January 2025, expected to be implemented by next year.
- Employees and pensioners are hopeful for significant salary and pension hikes.
- Reports suggest that with the 8th Pay Commission, existing allowances might be replaced, potentially increasing financial benefits for employees.
No Discussion in March 5 Cabinet Meeting
The Union Cabinet meeting held on March 5, 2025, in New Delhi, did not include discussions on a DA hike. However, a decision is still expected this week before March 14 (Holi).
As Holi approaches, central government employees and pensioners eagerly await the official announcement on DA and DR hikes. If approved, the increase will provide financial relief ahead of the festival. With the 8th Pay Commission in progress, employees can also expect major salary and allowance revisions in the coming year. All eyes are now on the Union Cabinet’s final decision, which is expected soon.
