Major changes are being implemented under the 7th Pay Commission for the benefit of central employees and pensioners alike, making implementation by 2025 much needed. With the announcement of an increase in Dearness Allowance (DA) and Dearness Relief (DR), great relief has been given to thousands of employees and pensioners ever since April 2025. This move will improve their income and somewhat offset the effect of rising inflation. Know the latest news this month and its effect.
2% Dearness Allowance Increase
In April 2025, the central government announced that there would be a 2% increase in the Dearness Allowance (DA) and in Dearness Relief (DR). The increase is effective from January 1, 2025. This means that with effect from January 2025, the DA for central employees and pensioners would increase by 2% from 53% to 55%. The increase will benefit 486.6 million employees and 665.5 million pensioners. Arrears from January to March 2025 will be paid together with the salary for April 2025.
Increase In Minimum Wages And Pensions
After the increase in dearness allowance with the basic minimum pay of ₹18,000, such employees will be getting the extra benefits of ₹360 monthly. Similarly, pensioners receiving the minimum pension of ₹9,000 will be granted the benefits of an increase of ₹180 monthly. The increase will improve their survival and increase purchasing power.
State Governments Follow
After the announcement by the central government, many state governments also increased their DA for employees and pensioners. The Rajasthan government has announced the increase of DA for its employees and pensioners by 55%. The decision will benefit around 8 lakh employees and 4.40 lakh pensioners of the state. The amount of these arrears will be credited in the GPF account of the employees.
Importance Of Calculating Dearness Allowance
Dearness allowance is determined on the basis of the Consumer Price Index (CPI). The purpose of granting this allowance is to allow employees and pensioners to face the growth of inflation. Under the 7th Pay Commission, DA and DR increases are made twice a year-in January and July. This increase helps to keep the income of the earnings in a stable position.
Final Thought
The increase of dearness allowance in April 2025 under the 7th Pay Commission came as a relief to the central employees and pensioners. This will go a long way in increasing their income and cushioning them against the rising inflation. The more state government takes up this very same policy, the more employees and pensioners can benefit from it. This amendment is a giant step toward fiscal empowerment for the employees.
Also Read: Retirement Age Hike: Now Employees Will Retire At The Age Of 62? Check Complete Information