The central government is expected to bring good news for its employees by the end of February. Reports suggest that a 3% increase in Dearness Allowance (DA) is likely, raising it from 53% to 56% of the basic salary. This hike will be effective from January 1, 2025.
DA Hike Announcement Before Holi
Historically, the government has announced DA increases in late February or early March. This time, the announcement may come before Holi, which falls on March 14. The government is also set to release the PM Kisan installment on February 28. A crucial cabinet meeting on February 26 may finalize the decision regarding the DA hike.
How the DA Has Increased Over Time
- March 2024: DA increased by 4%, reaching 50%.
- October 2024: DA rose by 3%, bringing it to 53%.
- February 2025 (Expected): A 3% hike will raise DA to 56%.
This increase will also apply to pensioners, whose Dearness Relief (DR) is currently at 53%.
No Plans to Release COVID-19 DA Arrears
During a recent parliamentary session, Minister of State for Finance Pankaj Chaudhary clarified that the government is not considering releasing the pending 18 months of DA and DR arrears that were halted during the COVID-19 pandemic. The three installments from January 2020, July 2020, and January 2021 remain unpaid due to economic constraints caused by the pandemic.
Central employees can now look forward to the official announcement of the DA hike, which will provide some financial relief ahead of upcoming festivals.
