Mumbai, March 31: The central government officially announced a 2% increase in dearness allowance (DA) and dearness relief (DR) for government employees and pensioners, a decision made during a cabinet meeting chaired by Prime Minister Narendra Modi on Friday, March 28. This DA and DR hike, which will take effect from January 1, 2025, is expected to benefit over one crore employees and pensioners across the country.

This latest adjustment marks the lowest DA increase in the past seven years, as previous increments have typically ranged from 3% to 4%. The DA will rise from 53% to 55%, following an earlier increase that was implemented from July to December 2024. The modest increase has raised concerns among employees, as many were anticipating a more substantial adjustment to help offset rising living costs. 7th Pay Commission DA Hike: Here’s How Much Salary Will Increase for Central Govt Employees After 2% Dearness Allowance Hike.

7th Pay Commission DA Arrears Payment Date

The timing of the announcement has also drawn attention, as it comes later than usual. Traditionally, the government announces such increases before major festivals like Holi or Diwali. This year, however, the increase for the January to June period was revealed only at the end of March. As a result, employees will see the increased DA reflected in their April salaries, along with arrears for the months of January to March 2025. 8th Pay Commission To Be Delayed? Know Why Implementation of 8th CPC May Get Delayed Till 2027.

For employees on the minimum basic salary of INR 18,000, the 2% hike translates to an additional INR 360 per month, resulting in total arrears of INR 1,080 for the three-month period. Pensioners receiving the minimum basic pension of INR 9,000 will see an increase of INR 540 in their arrears, which will be disbursed with their pension in April 2025. This increase, while modest, is a crucial financial relief for many government employees and pensioners facing economic challenges.

(The above story first appeared on LatestLY on Mar 31, 2025 08:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).