💰 Big relief ahead of Eid and Gudi Padwa!
March 29, 2025: The Union Cabinet, chaired by PM Narendra Modi, has approved a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, effective January 1, 2025.
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🧾 What’s the Update?
- DA increased from 53% to 55%
- Applies to 48.66 lakh employees and 66.55 lakh pensioners
- Effective from: January 1, 2025
- Annual impact on exchequer: ₹6,614.04 crore
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🧮 Why It Matters
This is the first DA hike since the 8th Pay Commission was approved in January 2025. The 8th Pay Commission recommendations will be implemented from January 1, 2026, but this hike ensures interim relief amid ongoing inflation.
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📊 DA Hike Timeline:
| Period | Hike | Effective |
|---|---|---|
| March 2024 | +4% | 50% → 54% |
| October 2024 | +3% | 54% → 57% |
| March 2025 | +2% | 53% → 55% (adjusted post-recalculation) |
📘 What is DA (Dearness Allowance)?
DA is a cost-of-living adjustment paid to govt employees and pensioners to combat inflation, calculated using the All India Consumer Price Index (AICPI).
It is revised twice a year – January and July – as per 7th Pay Commission rules (until the 8th kicks in).