Government to Announce DA Hike Tomorrow? Expected Increase and Key Details

DA Increase Update: Will the Central Government Raise Dearness Allowance on March 5?

With Holi around the corner, speculation is growing regarding a possible increase in the Dearness Allowance (DA) for government employees and pensioners. Traditionally, the government has announced DA hikes before Holi, and if past trends hold, an official decision could come after the cabinet meeting scheduled for Wednesday, March 5.

Will DA Rise by 3%?

The government is anticipated to approve a 3% increase in DA. If implemented, this will lead to a salary hike for government employees across different pay levels. For instance, employees earning a basic salary of Rs 18,000 per month could see an increase of Rs 540 in their salary.

Understanding DA Calculation

For an employee with a total salary of Rs 30,000 and a basic salary of Rs 18,000, the current DA at 50% amounts to Rs 9,000. If the expected 3% increase is applied, DA will rise to Rs 9,540, adding Rs 540 to the monthly salary. A 4% hike would raise DA to Rs 9,720, increasing the salary by Rs 720 per month.

Previous DA Hikes

In March 2024, the government increased DA by 4%, bringing it to 50%. This was followed by a 3% hike in October 2024, making it 53%. Now, another increment of 3-4% is expected, effective from January 1, 2025, though the official announcement is still awaited.

Who Will Benefit?

If the DA hike is approved, it will benefit more than one crore government employees and pensioners. As per government policy, DA and dearness relief (DR) for pensioners are revised twice annually, in January and July. The upcoming increment would provide another boost to the earnings of central government employees, ensuring inflation-related adjustments to their salaries.