New Delhi: There is a relief news for central employees and pensioners. The central government has given the green signal to a 2 percent increase in Dearness Allowance (DA) and Dearness Relief (DR). This increase will be effective from January 1, 2025 and will reach the employees’ account in the salary of April. This decision was approved in the cabinet meeting chaired by Prime Minister Narendra Modi on 28 March 2025. This move will directly benefit about 48.6 lakh employees and 66.5 lakh pensioners.

When and how will the benefit be available?

Employees will get increased DA with the salary of April 2025, along with the arrears of January, February and March will also be given in lump sum. This means that an additional amount will come in their pocket this month. For example, if someone’s minimum basic salary is Rs 18,000, then a 2% increase will give an additional Rs 360 every month. If we add the arrears of three months, this amount will become Rs 1,080. On the other hand, if we talk about pension, there will be a monthly increase of Rs 180 on the basic pension of Rs 9,000, and the arrears of three months will be Rs 540. A junior employee Rakesh Verma expressed happiness and said, “This increase may seem small, but with the arrears it will give a big relief. Every rupee is important in the rising inflation.” Financial burden will increase on the government This decision will put an additional burden of Rs 6,614.04 crore annually on the government treasury. But the government is considering it a necessary step for the financial security of employees and pensioners. An official of the Union Finance Ministry said, “This increase was the need of the hour in view of inflation. Our goal is to maintain the standard of living of the employees.” This increase has been decided on the basis of Consumer Price Index (CPI), which shows the increased inflation in the last six months. Next hike and 8th Pay Commission
The next hike in DA will be for July-December 2025, which is likely to be announced in October or November. But all eyes are now on the 8th Pay Commission. According to sources, the government may soon announce the names of its committee members. This committee will submit its recommendations in 15 to 18 months, after which there will be a major change in salary and pension. Experts say that when the 8th Pay Commission is implemented, DA will be merged with the basic salary, and it will start again from zero. Sunita Mehta, a retired officer, hoped, “If the new commission comes on time, it will further strengthen our pension. We are waiting.” Analysis: Relief for employees, challenge for the government
This 2% hike may seem minor, but with three months of arrears, it is a meaningful relief for employees and pensioners. Especially when inflation has broken the back of the common man. But this has brought a double challenge for the government—on one hand the financial burden, on the other hand the demand of the 8th Pay Commission. Expert Professor Ajay Sharma says, “This hike will boost the morale of the employees, but in the long run the government needs major reforms. The new pay commission can be a big step in this direction.”

The way forward

The month of April will bring happiness for government employees and pensioners. But this is just the beginning. The recommendations of the 8th Pay Commission will not only change the salary structure, but can also bring new energy to government services. Till then, this hike will bring smiles on the faces of lakhs of families. Ramlal, a pensioner, said, “This is a small gift, but what can be better than this before the festivals?” As the wait for salary is increasing, eyes are now fixed on the next step of the government.

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