DA Hike 2025: The central employees and pensioners received some relief. The central government approved a 4% increase in the dearness allowance (DA), which will be effective from July 1, 2025. With this increase, the rate of DA now stands at 57%. This decision has been taken under the 7th Pay Commission, which will benefit approximately 50 lakh employees and 65 lakh pensioners.
What Will Be The Effect On Salary?
The increase will directly impact the monthly salary of an employee. Let’s say, if an employee has a basic salary of ₹ 50,000; then after a DA of 57%, he/she will get an extra ₹ 25,000. Therefore his/her total salary will become ₹ 75,000. The calculation will also be similar for the pensioners.
When Will The Arrears Be Given?
Though the government is implementing this increase from July 1, 2025, the amount will be paid with the salary for October 2025. Also, the arrears for three months from July to September will be paid in a lump sum. Employees are advised to verify this increment in their salary slips.
By What Principle DA Is fixed?
The dear allowance is measured based on the Consumer Price Index published by the Central Statistics Organization (CSO). This increase accounts for retail inflation elevation observed over the last six months. The Government, it is noted, reviews the DA every six months.
What Will Follow In DA Rises For The State?
With the decision by the central government to increase DA, it is the turn of the state governments to consider increasing DA for their employees. Typically, the states follow with a decision of the Centre. However, the DA rates might differ depending on the financial condition of each state.
Conclusion
This increment in DA breathes a collective sigh of relief for the employees and pensioners amid rising inflation. This increase will not just enhance their purchasing power, but will also improve their standard of living. All beneficiaries are requested to obtain official information in this regard from their respective organizations, and contact immediately in the event of any discrepancies.
