This week can bring good news for crores of government employees and pensioners who are facing the brunt of inflation. After a long wait, now the government can take a decision to increase Dearness Allowance (DA) and Dearness Relief (DR). If the increase happens, then there will be a good increase in the salary and pension of lakhs of families.
1.2 crore central employees and pensioners across the country are eagerly waiting whether their Dearness Allowance (DA) and Dearness Relief (DR) will increase this time? Amidst rising inflation every month, this increase can be of great help in managing their household budget. This good news was expected before Holi but the government has not made any announcement till now. Will the government end their wait this week? If DA increases, then lakhs of families will get direct benefit. Now all eyes are on this Wednesday’s cabinet meeting where a big decision can come.
Can DA/DR increase this week?
There has been a long-standing expectation of increasing Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. Earlier it was anticipated that the government could announce an increase in DA/DR before Holi but it did not happen. No decision was taken on this even in the cabinet meeting held last week. However, traditionally the Union Cabinet meets every Wednesday and this week too the employees are expecting a DA increase. If the government announces the hike this week, then the arrears will also be given to the employees as per the new rates applicable from January 2025.
DA increases twice a year
The purpose of dearness allowance is to provide relief to employees from inflation and it is increased twice a year, the first increase comes into effect from January 1 and the second from July 1. Currently, under the 7th Pay Commission, central government employees get a minimum basic salary of ₹ 18,000 while pensioners are given a minimum pension of ₹ 9,000. In October 2024, the government increased DA/DR by 3%, taking it to 53%. Now experts believe that this time the DA increase can be between 2% to 4%.
What will be the impact on the salary of employees?
If there is a 2% increase in DA, then the DA of the employees will increase from 53% to 55%. In such a situation, those whose minimum basic salary is ₹ 18,000, their total salary will increase by ₹ 360 to ₹ 27,900. If DA increases by 3% and it reaches 56%, then their salary will increase by ₹ 540 to ₹ 28,080. On the other hand, if the increase is 4%, then DA will become 57% and the minimum salary will increase by ₹ 720 to reach ₹ 28,260.
How much will pensioners benefit?
Pensioners will also benefit from the DR increase. If there is a 2% increase, those whose minimum pension is ₹ 9,000, their pension will increase by ₹ 180 to ₹ 13,950. With a 3% increase, the pension will increase by ₹ 270 to ₹ 14,040, while with a 4% increase, the total pension will increase by ₹ 360 to ₹ 14,130. Now all eyes are on the cabinet meeting to be held this week where the government can take a final decision on DA/DR increase.
