Da hike: The central government on Wednesday approved a 3% increase in dearness (DA) and inflation relief (DR) for the current and retired government employees. Information and Broadcasting Minister Ashwini Vaishnav said that 49 lakh central employees and 69 lakh pensioners will benefit from this increase.
This increase will be effective from July 1, 2025. Its cost will be around Rs 10,084 crore.
Good news before Diwali
As the festival of Diwali was approaching, central employees and pensioners were waiting for the announcement of DA and Dr hike. Usually this increase is done during big festivals so that the economic conditions of employees and pensioners are strong amid increasing inflation. However, this year the notification is slightly delayed.
Importance of DA and Dr
The government changes DA and Dr twice every year. First time in January and second time in July. In this, the dearness allowance of government employees is increased according to inflation. At the same time, the pension of retired employees also increases as inflation relief. Its purpose is to protect employees and pensioners from the effect of inflation.
How much will the employees benefit?
Under the 7th Pay Commission, an increase of 3% will increase the monthly income of the employees who get the minimum basic salary of Rs 18,000. This will earn a total of Rs 28,440.
At the same time, pension of pensioners receiving a minimum pension of Rs 9,000 will increase by Rs 270. Their total pension will be Rs 14,220 at the new 58% rate.
How much was the last time da
The government implemented a 2% increase in DA/DR in March 2025, which was effective from January 1. After this increase, DA increased by 55%. This provides additional financial support to employees and pensioners between rising costs.
Railway employees bonus
The Union Cabinet has also approved the demonstration-based bonus of railway employees. Union of Central Government Employees and Workers (CCGEW) had expressed concern over the delay. This announcement is usually made in late September and the pension/salary amount is released in early October.