In April 2025, the Central Government announced that the Dearness Allowance and Dearness Relief, granted under the 7th Pay Commission, would be increased by 2%. The decision came into effect from January 2025 and aims to provide some relief to government employees and pensioners from losses due to price increases. The financial relief would bring additional financial support for millions of employees and pensioners. It is important to inform you about this update in finer detail.
Dearness Allowance And Dearness Relief Increase
The Prime Minister Narendra Modi-led Cabinet met on that day to grant approval to the 2 percent increase in Dearness Allowance and Dearness Relief. With this, now DA and DR have increased from 53% to 55%. The increase is applicable to central employees and pensioners to offset the inflationary trend in the cost of living.
Details Of Arrears Payment
Government employees and pensioners will be paid arrears for January, February, and March 2025 along with salary and pension for April 2025. For an employee drawing the minimum basic pay of ₹18,000, the package will amount to ₹360 per month, and the total arrear amount for three months is ₹1,080. In the case of pensioners, for a basic pension of ₹9,000, an increase of ₹180 per month is applicable; thus, the total for the three-month arrears becomes ₹540.
Number Of Beneficiaries And Financial Impact
About 48.66 lakh central employees and 66.55 lakh pensioners will benefit from this increase. The annual financial implication on the government shall be ₹6,614.04 crore. Through this, employees and pensioners can alleviate the impact of inflation and thus safeguard their purchasing power.
Future Prospects
The next announcement for the Dearness Allowance increment would be held in October 2025 for the period of July to December 2025. Another prospect under examination is the merger of DA with basic pay post-implementation of the 8th Pay Commission. This potential decision contains the possibility of an unprecedented change in the salary structure of employees, thus benefitting their financial well-being.
Positive Move For Government Employees
The increase of Dearness Allowance and Dearness Relief under the 7th Pay Commission is a boon in disguise for the government employees and pensioners. It not only provides for their sustenance but also gives them a chance to live with some dignity.
Also Read: DA Calculation: How It Impacts Your Salary Or Pension? Check Details
